Hyundai Motor Faces Ongoing Production Disruptions Due to 'Motras' Parts Supplier Strike

by Woo Sooyoun

Published 26 Sep.2025 10:18(KST)

Morning and afternoon shifts each hold a six-hour strike

On September 26, Hyundai Motor Company once again experienced production disruptions due to a strike at a parts supplier.

According to the automotive industry, the labor union of Motras, a subsidiary of Hyundai Mobis, began a strike at 9 a.m. on the same day. Both the morning and afternoon shifts are scheduled to strike for six hours each.

As a result, the operating rate of major production lines at Hyundai Motor's Ulsan plant has dropped, with some conveyor belts stopping and starting intermittently. Certain lines have been completely shut down.

The automotive industry’s production system is based on the Just In Time (JIT) method, which means that any disruption in supply from partner companies immediately impacts the production line. While this strategy aims to minimize parts inventory and flexibly adjust production volume, strikes at parts suppliers directly affect the assembly line of finished vehicles.

Motras, a subsidiary of Hyundai Mobis, manufactures various electronic devices and modules. The Motras labor union in the Ulsan region is estimated to have about 1,500 members.

Since their initial meeting in May, Motras labor and management have continued negotiations but remain at odds over the wage increase rate and employment stability measures through securing new orders. Management recently proposed a monthly base salary increase of 79,000 won, but the union maintains that the gap with the 100,000 won base salary increase agreed upon by Hyundai Motor’s labor and management is too large to accept.

If the conflict continues, there is a possibility of additional strikes after the Chuseok holiday. The Motras union already participated in a four-hour strike as part of the Korean Confederation of Trade Unions’ general strike on July 16, and also held a four-hour partial strike on September 24.