Hankook and Kumho Resume Tyre Supply to GM Daewoo

South Korean vehicle manufacturer GM Daewoo Automotive and Technology recommenced production at is Bupyeong facility on July 22 following the resumption of its tyre supply. According to a GM official, “Hankook Tire and Kumho Tire resumed their supplies from this afternoon. Both tyre makers told GM Daewoo that they accepted an order by the court to not suspend tyre supply.”

Hankook and Kumho, who together provide over 85 per cent of the tyres fitted to vehicles at the facility, suspended supplies in a dispute over prices, making a cessation of production necessary on July 18. The two manufacturers had been requesting a 12 per cent tyre price increase in the wake of escalating production costs. GM Daewoo filed a complaint with the Seoul Central District Court on July 17, requesting it prevent tyre manufacturers from stopping supplies.

“We are still calling for a 12 per cent hike in tyre prices,” said Hankook Tire spokesman Calvin Pak. Mr. Pak added that GM Daewoo had so far refused to discuss terms with Hankook. A GM official said the automaker was still considering whether it would participate in negotiations on tyre prices.