Supply disruption halts work at Hyundai Motor’s plant in China

Hyundai’s car sales were nearly halved after Beijing expressed anger to Seoul over its decision to install the US anti-missile system.

Hyundai Motor Co said its China plant halted operation due to a supply disruption on Tuesday, its second shutdown in China in less than a month as diplomatic tensions between China and South Korea over a US missile defence system took toll on its business.

Men cycle past an advertising billboard for Hyundai cars opposite the plant of Hyundai Motor Co in Beijing. (REUTERS)

One of the five China plants operated by its joint venture Beijing Hyundai Motor Co stopped churning out cars earlier in the day as a German supplier stopped deliveries of air intake systems when Hyundai delayed payments, Hyundai Motor’s spokesperson Cha Seon-jin said by phone.

The company is in talks with the supplier to resume operations as soon as possible, Cha said.

The latest shutdown is part of Hyundai’s ongoing woes in China. Its car sales were nearly halved after Beijing expressed anger to Seoul over its decision to install the US anti-missile system.

Last month, Hyundai’s entire China production stopped for a week when it couldn’t pay a supplier.