Hyundai Motor Cuts Truck Production to Cope with Falling Korea's Demand
Hyundai Motor will cut commercial vehicle production and transfer workers to other production lines to cope with the slow domestic demand for medium and heavy trucks, the automaker said Wednesday.
Management and labor recently agreed to reduce truck production at the Jeonju factory in Wanju, North Jeolla Province, to eight units an hour from 12.39.
They also reached a compromise on the transfer of 300 employees.
Among them, 210 will work at other production lines in the factory, while the remaining 90 will move to Hyundai's factories in Ulsan and Gwangju.
The Jeonju factory makes buses, the Mighty light-duty vehicle and the Xcient heavy-duty truck.
According to Hyundai, the measure will affect the lines of medium- and heavy-duty trucks, which are mainly used as tractor-trailers, cargo trucks and dump trucks.
The Hyundai Porter, which can carry a ton of cargo, is not affected because the vehicle is produced at the Ulsan factory.
"The recent decision is a countermeasure to the falling truck demand, which is caused by a decline in container port traffic and a slump in the domestic construction industry," a Hyundai Motor official said.
Data compiled by the Korea Automobile Manufacturers Association showed Hyundai sold 25,017 medium-duty trucks between January and September, down 15.4 percent from a year earlier.
The company sold 4,424 heavy-duty trucks during the period, a 28.1 percent decline year-on-year.
Amid worsening profitability, the automaker temporarily suspended operation of a production line for medium trucks from Mar. 26 to 30.
In July, it unprecedentedly transferred 47 workers from the Jeonju factory to the Kia Motors Gwangju factory.
According to industry officials, Hyundai is not the only truck maker suffering from falling demand.
Tata Daewoo, a Korean commercial vehicle manufacturer owned by the India-based Tata Motors, scrapped its plan to release new medium and light trucks in 2019.
In addition, 1,000 employees of Tata Daewoo working at the company's Gunsan factory in North Jeolla Province had to take leave for a couple of weeks during summer as the automaker could not afford to run the factory amid plunging sales.
Foreign truck makers, such as Volvo, MAN, Scania and Daimler, are going all out to narrow the price gap between their trucks and those made in Korea.
Some of them are offering discounts up to 30 percent to clear their inventories of medium and heavy trucks. (www.chinatrucks.com)
- Hyundai Targets 15% of European Hydrogen Truck Market by 2030 2020-07-24
- Hyundai Wins 2020 Truck Innovation Award 2019-12-19
- Hyundai Showcases NEPTUNE Fuel Cell Truck Concept at CIIE 2019-11-14
- Hyundai Motor Company and Cummins to Collaborate on Hydrogen Fuel Cell Tech 2019-09-29
- Sichuan Hyundai Launches New Version of Mighty Light Truck 2019-08-19
- WABCO Signs Deal with Hyundai to Supply Advanced Techs for New Medium Trucks 2018-11-12
- IAA 2018: Hyundai Signs MoU for Rolling out Fuel Cell Electric Trucks 2018-09-21
- Hyundai Motor Agrees New Truck Partnership with Sichuan Energy in China 2018-09-06
- Hyundai Put Self-driving Truck on South Korean Highway for Test Run 2018-08-23
- Sichuan Hyundai Opens 4S Stores in Myanmar 2018-07-04
Submit Your Requirements, We Are Always At Your Service.
- BYD Starts Operating Its Battery Factory in Brazil
- Kenworth Produces Last Severe-Service K500 Cabover
- Dongfeng Starts Construction on Its New Factory in Shiyan
- LNG Truck Sales Expected to Reach 113 Thousand Units by End of 2020
- ZOOMLION Listed in China’s 500 Most Valuable Brands for 17 Consecutive Years
- ZOOMLION’s 38m Truck Mounted Pump for India Rolls off Assembly Line
- Foton Signed a Strategic Cooperation Framework Agreement with Weichai
- Foton's Brand Value Reached 168.592 Billion RMB
- JAC and VW Cooperation Process
- Hyundai Targets 15% of European Hydrogen Truck Market by 2030
C&C Trucks Co., Ltd.
C&C Trucks Co , Ltd (C&C Trucks), located in Sanshan Economic Development Zone, Wuhu, Anhui Province, a holding company under China International Marine Containers (Group) Co , Ltd (CIMC), is a large heavy truck enterprise integrating the research and development, production
- Chinese Heavy Truck Makers Set Higher Sales Targets for 2020
- JAC Truck Achieves 23,000 Units Sales in July, a 40.8% YoY Growth
- China’s Tractor Sales Saw Surging Growth in July
- Foton's July Truck Sales Seen Surging Growth
- China’s Heavy Truck Sales Hit New High in July
- Foton Overseas Sales Grow Against the Trend in H1, 2020
- China's Pickup Truck Output And Sales Went Up in June
- China’s Medium-size Trucks Sales Totalled 13,000 Units, Up 36.8% Year-on-Year
- Hongyan Tops the Dumper Sales List in June
- JAC Light Duty Truck Sales Exceeds 100 Thousands Units with 6% YoY Growth in H1