Hyundai and Kia have both decided to slow down production in Asia due to declining sales. Hyundai opted for a 25% cut at its Asan plant in South Korea on May 28-29, while Kia limited the number of working hours at its Chinese facility.
The two automakers are experiencing a dip in sales due to unfavourable currency exchange rates, which make it harder to rival their Japanese competitors such as Toyota. They said they were making efforts to reduce costs after seeing their operating profit fall during the first quarter.
According to Bloomberg, the production cuts by Hyundai and Kia are designed to flexibly adjust the plants’ production to market demand.