상단영역

본문영역

Hyundai Motors continues to be in crisis

  • 기사입력 2013.08.24 12:41
  • 최종수정 2014.05.15 10:33
  • 기자명 신승영

 

 


[AutoDaily] Hyundai Motors Co. is recently having some trouble with a labor strike and water leaks in the SantaFe and the Avante.
 
On 23rd August, the Hyundai Motor union began a partial strike for 4 hours (two shifts, total 8hours) a day. They are also refusing to work overtime on weekends and weekday evenings. This means that they have stepped the strike level up more than from a partial 2 hour strike on the 20th and 21st.
 
This strike is expected to disrupt production of 1,500 vehicles per day at the Ulsan, Asan and Jeonju factories. It is likely that the strike will continue since Hyundai Motors said they cannot accept all requests that the union has asked for.
 
The continuing strike will be getting worse if negotiations with Hyundai don't come to an agreement. This will create a supply shortage problem for the car maker. The Avante, Equus, Sante Fe and Porter for the Korean market are already on backorder as of now. On top of that the company will not be able to supply the 160,000 vehicles supposed to be shipped to its major overseas markets on time.
 
The Hyundai dealerships in the United States might seriously get damaged without the vehicle inventory being shipped on time. Inventory supply on average is 60 days, while in the United States it's at 44.
 
With 45 percent of Hyundai's vehicles that are sold in the U.S being made in Korea and the major core parts for the Sonata and Avante that also get shipped to the Hyundai factory in Alabama for assembly. The delayed parts supplied to the Alabama factory which will bring even more damaged setbacks for the car maker.
 
Another problem Hyundai Motors is facing are water leaks in some of their main models. This is an occurring consumer complaint which is becoming more of a serious issue.
 
The Santa Fe has leaks coming from the back seat and trunk areas, while the Avante's leaks are coming from the engine room.
 
Hyundai Motor Company has been feeling pressure the last few months with all their problems arising. One thing they are working on is trying to figure out what is causing their cars to have leaks in the areas that should be sealed properly..
 
Meanwhile, the MLTM(Ministry of Land, Trasport and Maritime Affairs) and KATRI(Korea Automobile Testing & Research Institute), these two government agencies are officially investigating the water leaks on the Santa Fe and will determine if there is a problem or not. As for the Avante they will inquire more about the complaints of the engine room leak and see if they need to proceed with an investigation.
 
 
By Lee Sangwon.
(translate by Lee Jeonghwa.)

 

 

이 기사를 공유합니다