SEOUL – General Motors Co’s South Korea unit has resumed production at its two factories in the country this week following a production halt that lasted about two weeks over procurement issues, an official at GM Korea told Reuters on Tuesday.
The U.S. automaker’s Korea unit had suspended production of all vehicles at its Changwon and No. 2 Bupyeong plants since mid-July after a local supplier, which demanded a price hike for its products, refused to supply auto parts.
South Korea’s ERAE AMS, which makes parts for automakers including Volkswagen AG, Hyundai Motor Co and BYD, refused to supply parts, demanding a price increase for parts supplied to GM Korea’s factories.
GM Korea did not have a comment and ERAE AMS was not available for comment when contacted by Reuters.
GM Korea’s Changwon and No. 2 Bupyeong plants have a combined annual production capacity of about 70,000 vehicles, accounting for about 30% of GM Korea’s total annual production capacity last year, data from the Korea Automobile Manufacturers Association showed.
Production at No. 1 Bupyeong plant, which makes the Trailblazer sport-utility vehicle (SUV), has not been affected, according to GM Korea.
(Reporting by Heekyong Yang; Editing by Leslie Adler)