Hyundai Stops China Car Production As Sales Fall Over THAAD Missile Row

  • Our Bureau
  • 07:07 AM, August 30, 2017
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Hyundai Stops China Car Production As Sales Fall Over THAAD Missile Row
Protest against THAAD Deployment in South Korea (Image for reference: VOA News)

Hyundai has stopped auto production at its four factories in China as tensions between South Korea and Being rose over US deployment of Terminal High Altitude Area Defense anti-missile system.

All four of its factories that have been in operation in China had stopped manufacturing vehicles as of Tuesday after a local parts supplier refused to supply components when Hyundai delayed payment. The company did not provide more details of the payment issue. Production at assembly lines gradually stopped starting last week because of the lack of the components, a spokesman was quoted as saying by Japanese news daily, Mainchi Wednesday.

Hyundai operates a joint venture, Beijing Hyundai Motor Co., with BAIC Motor Corp.

Hyundai's sales in China plunged 64 percent during the April-June quarter from a year earlier and its quarterly profit fell to the lowest level since 2010. Chinese consumers shunned South Korean cars because they are angry over Seoul's decision to deploy the U.S. missile defense system. South Korea says the defense system is aimed at deterring North Korean aggression but China is worried that its powerful radars would peer into its territory.

During the first half of this year, the company sold 321,000 vehicles in China, down 42 percent from a year earlier.

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