INTERNATIONAL - Hyundai Motor Co is considering suspending its oldest plant in China, it said on Wednesday, as the South Korean automaker reels from tumbling sales and massive overcapacity in its biggest market.
Hyundai Motor is reviewing production to enhance competitiveness and profitability. The plan includes suspension, not closure, of Plant 1 of the Beijing plants, Hyundai said in a statement, adding that a specific time is under review.
The automaker said about 2,000 employees in China took voluntary retirement or transferred to other factories.
South Korea’s Korea Economic Daily reported earlier that the company will suspend its first factory in China as early as next month.
China’s auto industry is slowing after a period of strong growth, hit by a weakening economy and the fallout of trade frictions with the United States. China’s car sales contracted for the first time since the 1990s last year.