Production subsidiaries of Hyundai Mobis, the largest auto parts supplier in South Korea, have launched consecutive parts strikes. Following U.S. tariffs and the detention of workers in Georgia, the domestic automotive industry is now facing a triple crisis as parts industry strikes threaten production lines as collateral.
According to industry sources on September 24, Motras and Unitus, production-specialized subsidiaries of Hyundai Mobis, began four-hour strikes during both day and night shifts from this day. Both unions have resolved to strike, demanding a 100% guarantee of future employment and base and performance pay equivalent to that of finished vehicle manufacturers. They are insisting that employment must be unconditionally guaranteed unless an employee voluntarily expresses their intention to resign.
If this partial strike prevents parts from being supplied on time, Hyundai Motor Company and Kia plants nationwide will soon have no choice but to halt operations. In particular, Motras supplies key semi-finished products for complete vehicles to Hyundai Motor Group. The modules produced here are immediately delivered to Hyundai Motor Company and Kia assembly lines, where they are assembled into final products. It is estimated that production disruptions could affect thousands of vehicles in a single day based on finished vehicle output.
Previously, in July, the Korean Confederation of Trade Unions (KCTU) launched a general strike, which already caused production disruptions at Hyundai Motor Group plants. At that time, Motras, Unitus, and other Hyundai Mobis affiliates also participated in the strike.
In 2022, Hyundai Mobis launched Motras and Unitus as production-specialized subsidiaries to improve management efficiency. By consolidating its nationwide network of partner companies into two entities, each specializing in automotive modules and core parts manufacturing, the company aimed to streamline its operations. However, this partial strike has now put Hyundai Mobis itself in a difficult position. Having barely returned to profitability in the second quarter after posting a loss in the first quarter of this year, it is estimated that securing the 'performance pay equivalent to finished vehicle manufacturers' demanded by the union would require several hundred billion won in additional resources.
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