Posted 07/03/2019 11: 44: 02CET
SEOUL, Mar. 7 (Reuters / EP) –
Hyundai is considering suspending production at its oldest plant in China due to falling sales in this market and the overproduction of factory overcapacity.
“Hyundai is reviewing production to improve competitiveness and profitability,” the South Korean company said in a statement on Wednesday, noting the plan includes the “suspension”, not the closure of the plant.
The company, which has three plants in Beijing and five in the country, said they have not yet decided when the production suspension will begin.
Hyundai’s sales in China accounted for half of its total production capacity in the Asian country last year. The automotive industry has slowed after decades of growth due to a weakening of the economy and trade frictions with the United States.
Add to this that Hyundai’s problems have been aggravated by a diplomatic row between Seoul and Beijing, which has affected the demand for South Korean products in China in recent years. And, according to analysts and distributors, the lack of attractive new models and strong brands weakens Hyundai’s position in the face of competition.