Hyundai in profit slump

Hyundai’s third-quarter profit fell well below forecasts, to its lowest level in almost seven years, says the NZ Herald. The marque says its July-September earnings fell 10 per cent from last year to NZ$1.3 billion, the lowest profit since the first quarter of 2010. Sales also fell 2 per cent from 2015 both in South Korea and overseas, down to 3.5 million units. Hyundai blamed the fall on production disruptions from a strike, when workers walked out during annual wage negotiations for 212 hours between July and September. The strike disrupted production of about 95,000 vehicles. While Hyundai saw strong sales growth in China, this was offset by modest demand in Europe and the US and slowing sales in Brazil and Russia. The company has also been struggling to up its production of SUVs, which have seen growing demand around the world, while quality issues have dealt a blow to its reputation in South Korea and abroad. Third quarter sales fell 6 per cent to NZ$27 billion, while operating income fell 30 per cent to $1.32 billion.