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在线翻译:
szdaily -> Business
Hyundai restarts production in China after supply hiccup
    2017-August-31  08:53    Shenzhen Daily

HYUNDAI Motor Co. said it restarted operations at all four plants in China after a supplier resumed deliveries of necessary parts, averting an extended production halt in its biggest market.

Poor sales in China caused the carmaker to delay payments, resulting in one vendor suspending deliveries of fuel tanks, a Hyundai spokesman said yesterday. Discussions are ongoing with that vendor regarding payments, the spokesman said, declining to elaborate on the amount and whether other suppliers were involved.

While Hyundai has avoided a prolonged crisis, the shutdowns expose the fragility of the automaker’s China operations as sales in the country slumped. The automaker has struggled to recover from a consumer backlash after South Korea’s plans to deploy a U.S. missile defense system. It has also been hurt by a sedan-heavy lineup as market demand gravitated toward SUVs, amid steep discounts by foreign brands and competition from Chinese automakers’ cheaper offerings.

“Hyundai is facing a failure of strategy and weakened competitiveness,” said Lee Hang-koo, a senior research fellow at Korea Institute for Industrial Economics and Trade in Sejong City, South Korea. “There is a bigger problem than the Thaad fallout. Hyundai has to improve its brand value and product quality to boost sales in China.”

The four plants, shut gradually since last week, restarted operations following the resumption of deliveries from the supplier, the spokesman said. Representatives for Hyundai’s Chinese partner, BAIC Motor Corp., and China joint venture, Beijing Hyundai, said the factories are operating normally.

Hyundai and BAIC, its only Chinese joint venture partner, have five plants in China with a total capacity to produce more than 1.6 million vehicles a year. The fifth plant isn’t operational yet.

Beijing Hyundai manufactures more than 10 models including Elantra sedans and Santa Fe SUVs and recorded 20 trillion won (US$18 billion) in revenue in 2016. Deliveries fell 42 percent to 301,000 units in the year to June.

The South Korean carmaker hired former Volkswagen AG executive Simon Loasby to lead its China design team as part of efforts to develop more tailored products for the market. The automaker is also planning to bring its Genesis luxury brand to China, possibly as early as next year, in a bet that demand will improve.(SD-Agencies)

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