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Strike in Korea may lead to a shortage of engines

The strike at the plant of automotive components in Korea jeopardize the work of companies such as Hyundai, Kia, GM Korea, SsangYong and Renault-Samsung, according to local news agencies.

Work at the plant Yoosung, located in Asan, 90 km from Seoul, was stopped last Wednesday after 11 rounds of negotiations for higher wages between workers and management, which again have failed. About 500 workers, previously barricaded in the enterprise, dispersed by the police, however, the restoration of the enterprise speech does not go. Recall that the plant in Asan Yoosung specializes in the manufacture of engine parts - in particular, cylinder liners and piston rings.

Working Yoosung, supplying components for engines, seeking changes in the wage and working hours. The plant itself blocked by strikers. To it were brought reinforced police units, and company officials have called the blockade of the plant illegal. As a result of the strike at Korean automakers already have shortages of parts for engines. Prior to the storming of Hyundai, Kia, GM Korea, Renault-Samsung and SsangYong Motor to assess the potential for losses in 276 thousand cars in the amount of 4.3 billion dollars per month.

In addition, due to the strike by five companies were forced to adjust production plans, a total of 30 models. Hyundai Group has suspended production of some modifications of the diesel engine plant in Ulsan. A company Kia interrupted production of diesel versions minivan Carnival.

The problem that arose at the plant, affecting 5,000 parts suppliers, 270 thousand auto workers and their families, and 1.7 million people who work in related fields. Russian representatives of Korean companies say that to assess the likely impact of the strike on the Russian market is still too early.
 

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