Hyundai Motor Co, South Korea’s top automaker, said on Wednesday it launched output cuts in most of its factories abroad due to falling sales as a global recession has hit auto demand in the world.
“We entered reduction in output of all overseas lines except the new Czech Republic factory,” said company spokesman Jake Jang said by telephone, without providing details. Hyundai started test production at the Czech plant in early November.
Hyundai, the world’s No.5 car maker along with its affiliate Kia Motors Corp, currently runs overseas production lines in the United States, China, Turkey, India and the Czech Republic. Hyundai posted a 40% drop in the US car sales in November versus a year ago, and its affiliate Kia Motor Corp fell 37%. “(We) slashed the US annual production target to 245,000 units from 260,000 units” said Jang, adding the decision was made a month ago.
Hyundai has this month stopped overtime work at all local production lines except one for compact sedans such as the Elantra. Analysts say the overtime ban should cut Hyundai production volumes by about 20,000 units a month. (Reuters)