Jul
20
2008
GM Daewoo halts production as South-Korean tiremakers freeze supply
Posted by: admin in Anything else, tags: GM, Hankook, KumhoGM Daewoo Auto & Technology Co., the South Korean unit of General Motors Corp., said Friday it has been forced to halt production at its main factory as two local tiremakers stopped supplying tires to demand a price hike.
Vehicle production at GM Daewoo’s main plant in Bupyeong, west of Seoul, was suspended indefinitely from Friday afternoon as Hankook Tire Co. and Kumho Tire Co., the nation’s top two tiremakers, cut their supply.
The two companies are demanding a 12 per cent rise in tire prices.
“The two tiremakers account for 85 per cent of our tire demand,” said an official at GM Daewoo.
“Unless the supply resumes, it will significantly hurt production,” the official said, asking not to be named.
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