SEOUL, South Korea: After a local supplier demanded a price hike for its supply parts, General Motors’ South Korea unit was forced to suspend production at its Changwon and No. 2 Bupyeong plants last week.
South Korean ERAE AMS, which manufactures auto parts, such as automotive generators, calipers and brake parts, refused to supply parts and demanded a price increase for its parts supplied to GM Korea’s factories.
“GM Korea plans to continue having discussions with ERAE AMS to resolve the issues,” GM Korea said in a statement.
ERAE AMS has production sites in South Korea, China and the United States, and supplies major automakers, including Volkswagen, Hyundai and BYD, among others, according to the company website.
GM Korea’s Changwon and No. 2 Bupyeong plants have a combined annual production capacity of about 70,000 vehicles, accounting for some 30 percent of GM Korea’s total annual production capacity last year, data from the Korea Automobile Manufacturers Association reported.