According to Reuters, on March 6, local time, South Korean automaker Hyundai Motor said it is considering suspending production plans for its oldest factory in China, as Hyundai Motor currently faces a sharp decline in sales and severe overcapacity in this largest market. Dilemma. Reuters report screenshot Before 2016, Hyundai Motor and its subsidiary Kia Motors have been the third largest automakers in China. According to the report, modern China's current move highlights the reversal of the fate of China's auto industry. Last year, China's auto industry suffered the first shrinkage in decades. Hyundai Motor said in a statement that the company "is evaluating production to enhance competitiveness and profitability." It also added that the plan includes “suspending production, rather than closing the No. 1 plant in Beijingâ€. Hyundai Motor has three production plants in Beijing, and the company said it has not yet decided when to start production. However, the South Korean economic news report said that the suspension of production may begin as early as next month. The statement also said that the joint venture between Hyundai Motor and BAIC Group is responsible for the operation of Hyundai Motor's five factories in China. About 2,000 employees voluntarily retire or transfer to other factories. According to the Nihon Keizai Shimbun, the annual production capacity of these five plants is about 1.8 million. However, sales in China in 2018 decreased by 9% year-on-year to only about 750,000 units, a decrease of about 30% compared with 2016 at the peak. After simple calculations, the factory operating rate in 2018 was only over 40%, and the maintenance cost of aging equipment in Beijing's No. 1 plant became a huge issue. Modern car related people said that they have formulated three plans to rebuild their business in China. First, reduce costs by cutting sales bonuses; Second, expand Southeast Asia and Central and South America; Third, adjust the structure in China. However, with regard to cutting sales bonuses and expanding operations in Southeast Asia, other automakers are exactly the same, and Hyundai Motor seems to need further structural adjustment. A related person from the company said, "It is not easy to close the factory." Beijing Hyundai has been exposed to the voluntary resignation around the Spring Festival in February. On the basis of determining the number of layoffs, the modern plan "constructs structural adjustments by the first half of 2019." Samsung Securities analyst Esther Yim said, "I think Hyundai is taking steps to shut down the factory. They have been delaying the closing time. Now it is certain that they have finally taken action." Another analyst and dealer said that Hyundai lacks attractive models and strong brands, making it vulnerable to competition from Chinese and global automakers. As early as last week, there were sources that said that Hyundai Motor CEO LeeWon-hee said the company is considering reducing its factory capacity in the largest market in China. The source also revealed that Hyundai Motor is considering solving the problem of overcapacity in the old factory in China and reducing the number of employees in China. 53Cm Nonwoven Wallpaper,Home Decor Nonwoven Wallpaper,European Retro Wallpaper,Waterproof Non-Woven Wallpaper JIANGSU ARTSTYLE DECORATION MATERIALS CO..LTD , https://www.artstyledecor.com
Abstract According to Reuters, local time on March 6, South Korean carmaker Hyundai Motor said the company is considering the suspension of the oldest factories in China, production planning, because Hyundai is currently the largest market faced a sharp decline in sales and production capacity serious Excessive dilemma. Reuters report screenshot...