Hyundai Motor to reduce inventory by reorganizing production lines around best-selling vehicles
Hyundai Motor Group announced that it will reorganize production lines by vehicle type to address weak sales last month. It said it would reduce production of Kia’s Tasman pickup truck and transmissions for commercial vehicles, while increasing production of models with solid demand.
Hyundai Motor Group announced that it would readjust its production strategy to overcome weak sales last month. The company said it would manage inventory by reorganizing production lines by vehicle type. It explained that the aim was to reduce inventory accumulation.
Specifically, it said it would reduce production of Kia’s Tasman pickup truck. It also announced that it would scale back production of transmissions for commercial vehicles. The company said it would shift the relevant equipment toward vehicle types with solid demand.
It said the models subject to production cuts and increases would be adjusted in line with demand trends. It said production-line conversions would proceed by changing line allocations at each plant. It announced that the conversion work would be carried out in stages.
Hyundai Motor said the measure would ease inventory pressure. It said it would adjust the shipment pace for vehicle models with excessive inventory. The company left open the possibility of further adjustments while monitoring sales conditions.
The announcement was described as an operational change reflecting sales data and inventory conditions. The company did not disclose the specific scale of the production cuts or the timing of the transition. It said it would align supply with demand by reallocating production lines.
The announcement contained no mention of the market or other companies. The measure was limited to the reallocation of internal production operations. The company said it would review its production plans again based on future sales performance.
Sources: 매일경제 산업
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