South Korea's Hyundai Motor and its affiliate Kia Motors said on Sunday that they suffered from a production disruption of some of its SUV models after a labour strike at one of its suppliers led to a parts shortage.
Hyundai, the world's fifth-biggest carmaker along with Kia Motors, warned that a protracted supply disruption could deal a blow at a time when Japanese rivals are all-out to resume production after the March 11 earthquake.
The parts supplier, Yoosung Enterprise Co, Ltd, stopped production from May 18, after labour members occupied production lines over disagreements on new wage and shift systems, Hyundai said in a statement. Yoosung provides key engine parts to Hyundai, Kia, the Korean units of General Motors, Renault SA and Ssangyong Motor.
Around 70 percent of the piston rings used in popular models produced by the two firms such as Sonata sedan, Santa Fe SUV, the K5 sedan and Sportage R SUVs come from the supplier.
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