As production subsidiaries of Hyundai Mobis, the largest auto parts supplier in Korea, have gone on strike one after another, Hyundai Motor Company and Kia are experiencing disruptions in finished vehicle production.
According to industry sources on September 24, the labor unions of Motras and Unitus, both production-specialized subsidiaries of Hyundai Mobis, began four-hour strikes during both day and night shifts starting today. The two unions resolved to strike, demanding 100% job security for the future and base salary and performance bonuses equivalent to those of finished vehicle manufacturers. They insist that employment must be guaranteed unconditionally unless an employee voluntarily expresses their intention to resign.
Motras supplies Hyundai Motor Group with automotive modules, which are key semi-finished products for complete vehicles. Unitus is responsible for producing essential parts such as various vehicle chassis components, electrification parts, airbags, and lamps.
Due to the strikes by these unions, it is estimated that production disruptions will affect thousands of vehicles in just one day. At Hyundai Motor’s Ulsan plant, most production lines are operating at reduced rates, with some lines having halted operations entirely. At Kia Autoland Gwangju, operations at Plants 1 and 2 were also suspended from the afternoon. These plants produce an average of about 1,000 finished vehicles per day, including models such as the Sportage, Soul, and Seltos.
Previously, in 2022, Hyundai Mobis launched Motras and Unitus as production-specialized subsidiaries as part of management efficiency efforts. By consolidating partner companies nationwide into two entities, each specializing in automotive modules and core parts manufacturing, the company aimed to streamline operations. However, this partial strike has now placed Hyundai Mobis, the parent company, 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 bonuses equivalent to those of finished vehicle manufacturers' demanded by the unions would require several hundred billion won in funding.
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