Transport

Truck Drivers Strike Prompts Hyundai to Ramp Up Output

 

One of South Korea’s biggest car manufacturing facilities plans to ramp up production this weekend despite a national strike by truck drivers that has hit ports and other critical companies, including steelmaker POSCO.

A Hyundai Motor union official said production at the Ulsan plants picked up slightly on Friday in some lines and the factory was operating at about 60% capacity overall, slightly higher than the 50% to 60% level in Thursday.

Hyundai declined to specify the status of its operations or delivery of finished cars.

“There are some disruptions to our production due to the truck drivers’ strike, and we hope production would be normalised as soon as possible,” a Hyundai spokesperson said.

The union official said an extra shift would be scheduled on Saturday’s factory, which had not been anticipated because of worsening parts supply issues. The company was pushing ahead to meet growing back orders.

Soaring Fuel Prices

On day five of the strike, some 100 unionised truck drivers, about a tenth of Friday’s show of force, assembled at the main gate of the  factory in the southern city, protesting against soaring fuel prices and demanding higher freight rates to cover costs.

About 800 striking union members were rallying at the gates of a nearby major petrochemical complex in Ulsan. They had cut the number of vehicles to one-tenth of normal levels on Friday, according to union officials.

South Korea is a major supplier of semiconductors, smartphones, vehicles, batteries and electronics goods.

The strike has deepened uncertainty over global supply chains already disrupted by China’s strict Covid-19 curbs and Russia’s invasion of Ukraine.

The Transport Ministry said on Saturday it planned to meet with union representatives to continue talks aimed at ending the truck drivers strike and called on union members to return to work immediately.

At the country’s main seaport in Busan, which handles about 80% of the country’s container movement, traffic was down to a third of normal levels on Friday, a government official said.

 

  • Reuters, with additional editing by George Russell

 

READ MORE:

Exploding Part Prompts Recall of 281,000 Hyundai Vehicles

Hyundai to Invest $5.4 Billion in New Georgia EV Plant

Hyundai Launches Plant to Make Indonesia’s First Electric Vehicle

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

FTX Crypto Fraudster Bankman-Fried Jailed For 25 Years

A US District Judge said the former billionaire wunderkid was responsible for one of the…

13 hours ago

China’s Big 5 Lenders Warn of Property Risks as Margins Shrink

Banks have been reluctant to deepen their exposure to the ailing real estate sector but…

15 hours ago

Chinese Biotech Giant WuXi ‘Sent US Client’s Data to Beijing’

US intelligence officials say Chinese pharma companies are risking national security at a time when…

19 hours ago

China’s BYD Delays EV Factory; Solid-State Batteries ‘Unsafe’

BYD has set back plans for an EV factory in Vietnam, while CATL has said…

19 hours ago

Yellen: China’s Green Energy Push a Threat to Global Jobs – AP

US Treasury Secretary Janet Yellen has accused China of ‘distorting prices’ with its increased green…

20 hours ago

Yen Fears Drag on Nikkei, Hang Seng Lifted by Policy Bets

Japan’s plunging currency and the threat of BoJ intervention sent Tokyo’s soaraway benchmark downwards

20 hours ago