Strikes at Hyundai Mobis Subsidiaries Halt Production at Hyundai Motor and Kia Plants

COMPANY / Reporter Kim Jisun / 2025-09-25 05:39:01

Photo courtesy of Yonhap News

 

 

 

[Alpha Biz= Kim Jisun] Seoul/Ulsan/Gwangju, September 24, 2025 – Partial strikes by unions at Hyundai Mobis subsidiaries Motras and Unitus have disrupted production at Hyundai Motor and Kia factories, highlighting growing labor challenges across the Hyundai Motor Group.



According to industry sources, Motras and Unitus began four-hour work stoppages per shift on September 24, demanding 100% job security guarantees and performance bonuses equal to those of complete vehicle makers. The strike quickly led to component supply disruptions, forcing production suspensions at downstream assembly plants.




Production Impact

Hyundai Motor Ulsan Plant – Korea’s largest auto manufacturing facility – saw partial line shutdowns in the afternoon.



Kia Autoland Gwangju – Out of three plants, Plants 1 and 2 were halted due to parts shortages.



Smooth component supply is critical to final assembly, but the partial strikes made continued operations unsustainable.



Ongoing Labor Tensions

The unrest comes as Hyundai Mobis itself faces difficulties in wage negotiations. During talks on September 22, management proposed:



KRW 100,000 base salary increase

Performance bonus: 400% of base pay + KRW 15 million + 17 shares of company stock

However, the union rejected the offer, insisting on performance pay equal to that of Hyundai Motor and Kia. The Mobis union has already been staging partial strikes for three consecutive weeks, raising fears of prolonged disruption.




Broader Challenges for Hyundai Motor Group

Hyundai Motor recently concluded its own wage deal with its union, but still faces production stoppages due to its suppliers’ labor disputes. This comes on top of rising burdens from expanded definitions of ordinary wages and recent external challenges such as high U.S. tariffs and the detention of local workers overseas.



With the costs of strikes mounting, industry insiders note that Hyundai and Kia are considering bringing certain core component production in-house to reduce reliance on subsidiaries.

 

 

 

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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