Hyundai resumes production in China after supply disruption

FILE - In this April 26, 2017 file photo, the logo of Hyundai Motor Co. is displayed at the automaker’s showroom in Seoul, South Korea. Hyundai Motor Co. said Wednesday, Aug.30, 2017, that it resumed production at its plants in China where the automaker has been working to resolve a dispute with a parts supplier that led to a complete production halt. (AP Photo/Lee Jin-man, File)


SEOUL, South Korea (AP) — Hyundai Motor Co. says it has resumed production at factories in China following a shutdown that stemmed from a dispute between Beijing and Seoul over a U.S. missile defense system.

The shutdown, started last week when Hyundai did not pay a parts supplier that refused to provide fuel tanks in response, was the latest in series of challenges that have beset South Korea’s largest automaker in the key market, since a diplomatic row erupted in spring over South Korea’s decision to deploy a U.S. missile defense system.

A Hyundai spokesman says the supplier resumed providing fuel tanks today, allowing its China plants to return to production gradually. The company is still in talks with the supplier to resolve the payment issue.

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