11:08 am, September 26, 2016
HYUNDAI Motor’s sales and earnings targets are at risk as the brand’s South Korean labour union stages its first nationwide strike in 12 years.
The plants in this region produce 40 per cent of Hyundai’s global output and the one-day strike has resulted in 114,000 vehicles not being produced, worth 2.5 trillion won (£1.57bn).
Samsung Securities automotive analyst Eim Eun-young said: ‘This year’s strike is lasting longer than expected. The third-quarter earnings should disappoint.’
A partial strike is planned for the rest of this week, and the union warned that stoppages may carry on into next week.
In a statement, Hyundai Motors said that it was ‘obviously disappointed’ with any halt in production and that it would be continuing to work with the union to resolve the dispute.
The union’s issue has sprung from the offer of a wage deal, which was not as generous as the previous year’s.
The company, based in Seoul, saw its shares end down 1.1 per cent at 140,500 won against a 0.3 per cent drop on the broader market.
During the period April to June, Hyundai posted its tenth consecutive quarterly profit fall, which has been credited to emerging-market downturn and its failure to capitalise on global demand for SUVs.
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