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Hyundai Motor, Kia trim output amid slower sales
[SEOUL] Hyundai Motor Co cut production at its Asan plant by 25 per cent during May 28 and 29, a spokesman said on Friday, just days after the South Korean carmaker, squeezed by slowing global sales, said it would cut group operating expenses.
Affiliate Kia Motors Corp too shortened working hours at its Chinese plant earlier this month, the spokesman said, without giving details of the number of days.
"The production cuts have been made to be flexible to manage inventories," the spokesman said about the output reduction at both companies, without specifying the size of the cuts at Kia Motors.
Hyundai Motor and sister company Kia, which together rank fifth by global auto sales, saw worldwide annual sales drop 6 per cent and 5 per cent, respectively, in May.
Hyundai Motor Group said on Tuesday it planned to cut domestic operating expenses, with the savings depending on its sales performance in the third and fourth quarters.