Assembly lines at South Korea’s Hyundai Kia ground to a halt this weekend after the companies ran out of a needed engine parts. Production of Hyundai’s Tucson ix, Santa Fe and Veracruz and Kia’s Carnival has stopped. On Wednesday, production of most of Hyundai’s and Kia’s cars will be affected unless the parts shortage is solved. The Korean units of GM and Renault will suffer, as well as Ssangyong. Do they all get their engines parts from Japan?
They don’t. South Korea’s Yoosung Enterprise delivers 70 percent of the piston rings used in the popular models of Hyundai and Kia, writes Reuters. Yoosung has not been hit by a tsunami, but by a good old strike. Union members occupied production lines on May 18 over disagreements on new wage and shift systems.
“Yoosung’s piston rings account for around 50 percent of the parts used in our engines,” a GM Korea spokesperson said.
“Yoosung supplies all of the camshafts used in our SM5 2.0 models. We have an inventory of four days, but a prolonged strike could affect our production,” a spokesperson for Renault Samsung Motors said.
They better settled that labor dispute. Because as this old video shows, when Korean unions strike, they strike hard.