South Korea's largest carmaker, Hyundai, has slashed production 60 percent because of a mounting inventory of unsold cars, company officials said this week.
Hyundai Motors Co. produced 5,000 cars daily before a financial crisis hit the country late last year. It now is producing only 2,000 cars a day.Hyundai will halt production of four passenger car models completely at least until early March to reduce its stock of 45,000 unsold cars, company officials said.
Hyundai used to sell 60,000 cars a month in the domestic market but now is selling only half that number. Similar reductions in domestic sales were reported by other carmakers.
Ssangyong Motor Co., which makes four-wheel drive vehicles, stopped all production last week. Two other passenger carmakers, Daewoo and Kia, also said they cut production.