GM’s South Korea unit resumes production at two factories

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The U.S. automaker’s Korea unit had suspended production of all vehicles at its Changwon and No. 2 Bupyeong plants since mid-July after a local supplier, which demanded a price hike for its products, refused to supply auto parts.

South Korea’s ERAE AMS, which makes parts for automakers including Volkswagen AG (OTC:VWAGY), Hyundai Motor Co and BYD, refused to supply parts, demanding a price increase for parts supplied to GM Korea’s factories.

GM Korea did not have a comment and ERAE AMS was not available for comment when contacted by Reuters.

GM Korea’s Changwon and No. 2 Bupyeong plants have a combined annual production capacity of about 70,000 vehicles, accounting for about 30% of GM Korea’s total annual production capacity last year, data from the Korea Automobile Manufacturers Association showed.

Production at No. 1 Bupyeong plant, which makes the Trailblazer sport-utility vehicle (SUV), has not been affected, according to GM Korea.