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Strikes Slash Hyundai, Kia Exports from Korea 23%
Hyundai Motor Co. and affiliate Kia Motors Corp. exported 120,500 vehicles from South Korea last month compared with 156,200 units in July 2011.
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Hyundai Motor Co. and affiliate Kia Motors Corp. exported 120,500 vehicles from South Korea last month compared with 156,200 units in July 2011.
Intermittent strikes at their Korean facilities have cut production by 90,400 vehicles since mid-July. Labor talks there have dragged on since the companies rejected a union demand to end night shifts. Workers are now threatening an "all-out strike."
Hyundai and Kia export 35% and 70% of their domestic output, respectively. Hyundai says its shipments to the U.S. fell to 27,100 vehicles in July from 36,200 units in June.
The carmakers say tight inventories at their American dealerships are stunting sales growth there. July sales in the U.S. rose 4% to 62,000 vehicles at Hyundai and 6% to 48,100 units at Kia, compared with a 19% increase for all Asian automakers.
Hyundai-Kia had a 24-day supply of vehicles in the U.S. on Aug. 1 compared with an industry average of 54 days, according to Automotive News. A 60- to 65-day inventory is considered ideal.
Hyundai Chairman Chung Mong-koo is visiting Hyundai and Kia facilities in the U.S. this week to urge managers to develop growth strategies to combat the increasing strength of Japanese rivals.
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