General Motors’ South Korean unit has restarted production at its two plants in the country this week after a production halt that lasted about two weeks due to procurement issues.
The U.S. automaker’s Korea unit halted production of all vehicles at its Changwon and No. 2 Bupyeong plants since mid-July after a regional supplier, which demanded a price hike for its products, declined to supply auto parts.
South Korea’s ERAE AMS, which makes parts for automakers refused to supply parts, demanding a price increase for parts supplied to General Motors facilities in South Korea.
Changwon and Bupyeong plants have a combined yearly production capacity of about 70,000 vehicles, representing about 30% of GM Korea’s total annual production capacity in 2021.
Production at Bupyeong plant has not been affected, according to the automaker.