Hyundai Production Will Improve Now That Supplier Strike Is Over!

Hyundai believes that the ending of the strike will result in better production. One of their main suppliers for them as well as Kia Motors, was on strike, that makes the piston rings for the diesel engines. Hyundai and its affiliate, Kia Motors, are the worlds fifth largest auto manufacturer's in the world. Yoosung is their provider for about 70% of their piston rings. Yoosung main plant is about 48 miles south of Seoul. Their strike had forced Hyundai to stop production on two of the diesel engine lines. If you are wanting a vehicle with no shortage issues, check on Phoenix VW.

Police moved in Yoosung after declaring the work stoppage illegal. The strikers had prevented the non-strikers from entering the plant, then the strikers dominated the plant and took over the premises. Police were at the plant on Wednesday to help the non union employees normalize operations even though it still is unclear when the production will commence. Police had to retain over 500 employees out of the estimated 540 that were steadfast on the property. They have released around 400 and keeping 100 employees for questioning.

Hyundai has an optimistic outlook of resuming production hopefully on Thursday. Even though they have said this strike could cause a lost of millions if continued throughout the end of this month. Hyundai has estimated roughly $756 million in lost sales due to the strike. The strikers are trying to achieve the better pay and working hours. Hyundai Odessa and Tuscaloosa Hyundai do not have shortages of Hyundai's in stock.

Hyundai had to halt productions on many vehicles. One was the Santa Fe diesel powered engine, the Tucson Sport Utility vehicle and the Kia Carnival minivans, due to the part shortage. Though these strikes will cause some profit loss the stock market for Kia and Hyundai rose 2% yesterday. Kia up to 72,000 won in Seoul and Hyundai went up to 235,000 won with even Yoosoung jumping up 9%, up to 3760 won Seoul time yesterday.