Hyundai no longer considers making buses in China

Hyundai Motor Co. said today it was no longer considering producing buses in China as the company and its union had agreed on a work system to boost output at a local plant.

Prolonged labor disputes at its commercial vehicle plant in Chonju have hampered output at Hyundai.

Hyundai said in February that producing buses in China could be an option to help it fill an order backlog.

A breakthrough came as the company and its union agreed today to change the work system to allow night shifts from April this year.

The new shift system could double the Chonju plant's annual production capacity to 100,000 vehicles from 50,000, Hyundai said in a statement.

"We no longer consider overseas production of commercial vehicles," Jake Jang, a company spokesman, said. Hyundai does not have a bus plant in China.

Analysts have said expanding overseas production could help Hyundai reduce risks from frequent labor disputes and a strong won currency.

Hyundai has factories in the United States, China, India and Turkey. It is building a sedan factory in the Czech Republic.