Korean Hyundai Suppliers’ Greed forces Beijing Hyundai Suppliers to stop Supply

Currently, media report that Beijing Hyundai part suppliers are forced to stop supply and four factories suspend production, resulted by the defaulted loans from Beijing Hyundai. It’s revealed that the true reason comes in Korean Hyundai auto suppliers’ greed, resulting in the break cooperation between the two sides.

In fact, Hyundai KIA Group witnesses sales and revenue decline from the beginning of year. Beijing Hyundai has the primary task of further strengthening its local industrial chain to reduce costs. It’s also reported that Beijing Hyundai conduct comprehensive cost reduction on companies, personnel, sales, markets and suppliers. But most suppliers are exclusive Korean companies against on Beijing Hyundai’s requirements of lowering purchasing prices. Therefore, the disagreements on both sides force Beijing Hyundai to cease to pay payments to suppliers and suppliers also stop supplies.

It’s also learned that the short supply only concerns several parts for some models, having little impact on the production and operation of Beijing Hyundai.