Hyundai might not be able to reach its overseas sales target for September due to the strikes at the South Korean plants.
Last month, employees at Hyundai’s South Korean factories launched several partial strikes, refusing overtime work for five days. The same thing happened this month, for 21 days, affecting production at the plants which produce about a half of the automaker’s vehicles sold globally.
Hyundai not only will miss its overseas sales target for September, but might also miss its target for the home market in August. The South Korean market is responsible for 15% of the company’s total sales. The automaker also declared that with the help of its affiliate Kia Motors, it will be able to meet the sales target for this year, making up for lost production with extra work.
“The strike will lead to temporary drops in sales in August and September, although on an annual basis, the sales are expected to be fine,” the company executive said, without quantifying the size of the potential declines.
The strikes led to a production loss of 1.55 trillion Korean won ($1.36 billion) or 74,618 vehicles. The last significant strike at Hyundai was in 2006 and it caused a loss of 1.64 trillion won.