Hyundai halts China production as missile row cuts sales
Posted August 29
SEOUL, South Korea — Hyundai Motor Co. says it has halted production in China as tensions between Seoul and Beijing over an U.S. anti-missile system left the company unable to pay a supplier.
South Korea's largest automaker said all four of its factories that have been in operation in China stopped manufacturing vehicles as of Tuesday because a local parts supplier refused to supply components after Hyundai delayed payment.
Hyundai's sales in China tanked 64 percent during the April-June quarter as Chinese consumers shunned Korean cars due to Seoul's decision to deploy a U.S. missile defense system to deter North Korean aggression. China is worried that its powerful radars would peer into its territory.
Hyundai's April-June profit fell to the lowest level since 2010.