(Yicai Global) Jan. 25 -- Beijing Hyundai Motor, a joint venture between Chinese automaker BAIC Motor and South Korea's largest car maker Hyundai Motor has laid off 2,000 workers recently and plans to shut one of its plants, various Chinese automotive media reported, citing JV staff.
The Beijing-based firm is giving workers in several factories pink slips, asking for volunteers and soliciting employees' input before the cull, plant staff said, adding the ranks of those let go now total around 2,000.
The JV's sales have dropped in China over the past four years, to 780,000 last year from about 1.2 million units in 2014.
The difference of opinion on the deployment of the US Terminal High Altitude Area Defense between China and South Korea in 2017, the weaker competitiveness of South Korean vehicles and tardy upgrades are all seen as root causes of the market share losses in China of Hyundai and Seoul-headquartered Kia Motors.
Those departing are paid subsidies that include wage and salary payments they are entitled to based on their length of service plus one month, three and a half times their year-end bonuses, and CNY8,000 (USD1,182.8) as an incentive.
The fourth quarter dealt Hyundai Motors a current net loss of KRW203 billion (USD181 million) and it ran a quarterly deficit for the first time since 2010.
The Seoul-based firm's annual operating revenue last year plummeted 47.1 percent to KRW2.4 trillion (USD2.2 billion) in a record low since 2010, per the firm's annual business results released yesterday.
The firm attributed this poor showing to unfavorable factors such as exchange rates and problems with its affiliates.
Editor: Ben Armour