The problem stemmed from a dispute with a supplier that sought a price hike for his firm's products and refused to supply auto parts since earlier this month. Photo: Reuters.
General Motors Co (GM) has restarted production at two of its factories in South Korea after a disruption that continued for two weeks over procurement troubles, a GM Korea official said.
Production had been suspended at its Changwon and No-2 Bupyeong factories after a supplier, which sought a price hike for its products, refused to supply auto parts since earlier this month.
ERAE AMS, which makes parts for automakers including Volkswagen AG, Hyundai Motor and BYD, refused to supply parts, demanding a price increase for parts supplied to GM Korea‘s factories.
General Motors Korea did not have a comment and ERAE AMS was not available for comment.
The Changwon and No-2 Bupyeong plants have a combined annual production capacity of about 70,000 vehicles, accounting for about 30% of GM Korea’s total annual production capacity last year, data from the Korea Automobile Manufacturers Association showed.
Production at No-1 Bupyeong plant, which makes the Trailblazer sport-utility vehicle (SUV), has not been affected, according to GM Korea.
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