The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Hyundai Motor Co. appointed a new chief for its China operations after payment disputes with vendors resulted in temporary shutdowns last month at four of its factories in the automaker’s biggest market.
Tao Hung Tan replaced Chang Won-shin as the chief executive officer of Beijing Hyundai Motor starting September 1, the Seoul-based company said, without elaborating on the reasons for the change.
Hyundai Motor’s joint venture with BAIC Motor Corp. in China
has five factories, of which one isn’t operational yet.
One of the vendors suspended delivery of fuel tanks, citing payment delays, causing the brief output disruptions in August, according to a Hyundai Motor spokesman. Operations resumed after talks, which are still continuing. Hyundai and BAIC representatives said August 30 that the factories were running normally.
The replacement of the top executive comes on the heels of the shutdowns that have exposed the failings of Hyundai in China, where its sales tumbled 42 percent in the first half of 2017.
The carmaker has been hurt by a sedan-heavy lineup in a market where SUVs are gaining popularity, while discounts offered by local rivals and foreign brands dent its share.
Hyundai Motor and Kia Motors Corp. plan to provide $221 million to their suppliers in China in a liquidity boost, South Korea’s Ministry of Trade, Industry and Energy said.