Worker strikes hit Hyundai Motor sales in August

Worker strikes have brought down sales of cars from South Korean Hyundai Motor, which left Russia. For the first time in the last four years, the company recorded a minimum monthly sales volume, Bloomberg writes.

The reason for such a sharp decline in figures was production stoppages caused by employee strikes at factories in South Korea. Global vehicle deliveries fell 14 percent in August compared with the same month last year, according to official data released by the company. A total of 288,574 cars were sold.

The largest drop was recorded in the domestic market - by 41 percent. The manufacturer’s representative emphasized that such low results have not been seen since the beginning of 2022.

Last week, Hyundai management managed to reach an agreement with the union, but this was preceded by long-term disagreements over wages and working conditions. For several weeks, unionized employees have carried out partial work stoppages. In total they lasted 60 hours. The finale was a one-day strike at the end of August, which was the first such action for Hyundai in ten years.

According to analysts, production disruptions could cost Hyundai at least 2.3 trillion won (about 144 billion rubles) in lost profits.