Hyundai to slash domestic output amid global slump

SEOUL: Hyundai Motor Co., South Korea's largest automaker, will slash production between 25 per cent and 30 per cent at its domestic plants during the first quarter amid falling global demand for vehicles, the company said on Monday.

The cut will mostly affect larger vehicles, especially SUVs. Hyundai plans to increase output of small cars as demand for fuel-efficient models remains strong, company spokeswoman Song Mee-young said.

Hyundai manufactured about 4,25,000 vehicles domestically during the first quarter last year, she said.

The decision was made on Friday as a result of a meeting between management and labor on the company's production schedule for the quarter, she said.

Hyundai, which along with affiliate Kia Motors Corp. forms the world's fifth-largest automotive group, exports about 60 per cent of its domestic production.

Global automakers have slashed output to cope with a drop-off in demand as a result of the global financial crisis and ensuing economic slowdown.

Hyundai shares fell 3.3 per cent to close at 45,150 won ($33.24 cents) on Monday.