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Hyundai output disrupted by strike at key supplier

Tuesday, 24 May 2011


SEOUL, May 23: South Korea's top automaker the Hyundai Automotive Group said Monday its production has been disrupted by a strike at a core engine parts supplier. Yoosung Enterprise , which makes piston rings, cylinder liners and camshafts, closed its factories last Thursday after unionised workers launched a strike for better pay and working conditions. Yoosung provides engine parts for around 70 per cent of vehicles made by Hyundai Motor and its affiliate Kia Motors . Together they form a group that is the world's fifth-largest automaker by sales, with an increasing presence in major automobile markets including the United States, China and Russia. The shortage of parts has disrupted production of Hyundai's sport utility vehicles such as the Tucson ix, Santa Fe and Veracruz, as well as Kia's Carnival model. But the group said production of all models save for some small cars would inevitably be affected soon. - AFP