Hyundai Motor cuts output in all overseas plants, union says

ULSAN, Dec. 2 (Yonhap) -- Hyundai Motor Co., South Korea's top automaker, has curtailed production at its all overseas plants in reaction to slowing sales, the company's labor union said Tuesday.

Like its global peers, Hyundai is reeling from the worst economic downturn in
decades amid slumping sales in major markets such as the United States, Europe
and China.
Hyundai has already cut production at its seven plants in South Korea, reducing
monthly output by 10 percent.
Hyundai, which has long relied on overseas markets to fuel growth, has overseas
plants in the U.S., China, India and Turkey.
"The company informed the union of its reduction of output at its all overseas
plants," said Chang Kyo-ho, a union spokesman at Hyundai's main plant in Ulsan,
414 km southeast of Seoul.
Chang didn't say how much Hyundai plans to curtail output at its overseas plants.
Officials of Hyundai's public relations team weren't immediately available
comment.
Chang said Hyundai hasn't considered "acquiring other automakers like General
Motors Corp. because it's important to secure cash reserves for now."
Starting Monday, all domestic plants of Hyundai began cutting daily overtime in
the first such move since 1998, when South Korea's economy teetered on the edge
of collapse in the face of the Asian financial crisis.
Hyundai has already stopped weekend overtime at its local plants to cope with
slowing demand overseas and weak domestic consumption.
Last month, Hyundai's vehicle sales fell 1.6 percent from a year earlier to
234,211 units, the company said Monday.