Hyundai Reports Sales Loss for the First Time in 3 Years image

Hyundai reported the first fall in more than three years, with sales in August down 4.6% compared to the same period last month.

The decrease was due to the partial strikes at the automaker’s South Korean plants, that could also affect sales in September. The workers at these factories are expected to sign a tentative wage deal later today, which was reached last week. This deal could be the solution to end Hyundai’s tentative wage deal. A result will be announced today after midnight.

“The deal is likely to be approved given prolonged talks and walkouts. Traditionally, there were few cases where workers went on a strike again after a deal was rejected. Even if the deal is rejected, they will renegotiate the agreement,” said Suh Sung-moon, an analyst at Korea Investment & Securities.

But even if this deal is accepted, the company’s sales abroad, which account for 85% of the total, might still see a decrease in September because of these strikes. The total loss reaches 76,723 cars, that is 1.59 trillion Korean won ($1.40 billion), but the automaker announced it plans to make up for the waste with extra work later this year.