Hyundai Motor is laying off Russian factories, and China takes over the vacancy.

The Russian invasion of Ukraine dealt a huge blow to the Hyundai Motor Group, which had been doing well in the Russian market. The local plant has been shut down for nearly a year, and now it is forced to layoffs.

While most global automakers have withdrawn from the Russian market, Chinese automakers are taking over this position. Analysts say that even if the war is over, it will not be easy for Hyundai Motor Group to find its past status in the Russian market.

According to the automobile industry on the 14th, Hyundai Motor’s production subsidiary in St. Petersburg, western Russia, is conducting layoffs for local employees from the 16th of last month (local time) to the 27th of this month.

Source (Korean new website) : https://news.mt.co.kr/mtview.php?no=2023021709445486296

Jan. 31. 2023

Hyundai Motor’s Russian plant shutdown extended until the end of February… Suspended for 1 year

Hyundai Motor Company has extended the shutdown period of its Russian plants again. Although withdrawal is unavoidable due to the increased cost burden following the prolonged war between Russia and Ukraine, the dominant analysis is that it is a choice considering re-entry into the market in the future.

On the 30th (local time), Hyundai Motor Russia Manufacturing Corporation (HMMR) extended the shutdown period of its St. Petersburg plant until the end of February. This is the third time.

Previously, HMMR extended the plant shutdown period in St. Petersburg last year by one month from October to the end of November, and then postponed it once more until the end of the year.

Considering that the plant was shut down following the Russian invasion of Ukraine in March last year, it has been suspended for a total of one year. It is analyzed that they have chosen a strategy to hold on as they are suffering huge losses such as sunk costs due to the prolonged war, but difficulties in re-entry are expected when they withdraw from the local market.

Source (Korean new website) : https://www.theguru.co.kr/news/article.html?no=48971

Jan. 31. 2023

Hyundai Motor Co. to Lay off Employees of Its Russian Plant

Hyundai Motor Co.’s production subsidiary in St. Petersburg, Russia, will implement a layoff program for its employees from Jan. 16 to Feb. 27.

The company’s plant in St. Petersburg, which used to produce 200,000 vehicles a year, has been suspended since March 2022 due to the outbreak of the war in Ukraine.

At one time, the plant had 2,500 employees, but since the shutdown, 90 percent of the employees have been put on leave. Following the announced layoff, nobody knows whether the plant will reopen. The Korean automaker is planning to lay off close to 2,200 workers.

Source : http://www.businesskorea.co.kr/news/articleView.html?idxno=108566

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