Hyundai to cut production in Czech plant over crisis: report
South Korean carmaker Hyundai is to cut the working week in its new Czech plant to four days from this or next week because of falling demand for its vehicles, the E15 daily reported Tuesday, quoting a union leader.
By Agencies |
PRAGUE: South Korean carmaker Hyundai is to cut the working week in its new Czech plant to four days from this or next week because of falling demand for its vehicles, the E15 daily reported Tuesday, quoting a union leader.
Jiri Stredula, head of the KOVO union, said managers and unions had agreed the measure would be in effect for three months and Hyundai staff would get part of their wages for the day off.
Hyundai Motor Manufacturing Czech (HMMC) spokesman Petr Vanek declined to comment, referring to a press conference scheduled for Wednesday morning.
The 1.1-bn-euro (1.45-bn-dollar) plant, which launched production in early November with a plan to turn out 185,000 Hyundai i30 cars this year, employs about 2,000 people.
At the time it opened, Vanek said the global economic crisis "was not an issue" for the carmaker owing to its focus on small, economical cars aimed at customers looking for low price and consumption.
But Ecovis Corporate Finance analyst Jan Slaby said the crisis was likely to hit in particular the producers of smaller cars "as their potential buyers in particular are sensitive to economic problems."
Jiri Stredula, head of the KOVO union, said managers and unions had agreed the measure would be in effect for three months and Hyundai staff would get part of their wages for the day off.
Hyundai Motor Manufacturing Czech (HMMC) spokesman Petr Vanek declined to comment, referring to a press conference scheduled for Wednesday morning.
The 1.1-bn-euro (1.45-bn-dollar) plant, which launched production in early November with a plan to turn out 185,000 Hyundai i30 cars this year, employs about 2,000 people.
At the time it opened, Vanek said the global economic crisis "was not an issue" for the carmaker owing to its focus on small, economical cars aimed at customers looking for low price and consumption.
But Ecovis Corporate Finance analyst Jan Slaby said the crisis was likely to hit in particular the producers of smaller cars "as their potential buyers in particular are sensitive to economic problems."
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