Hyundai Motor has resumed production at its China factories after operations ground to a halt on Tuesday, when a local supplier refused to provide necessary parts after not receiving payment.
The carmaker said its China operations had resumed early in the afternoon on Wednesday after its shares dropped as much as 3.8 per cent during morning trade in Seoul.
On Tuesday Hyundai Motor revealed plunging sales in China meant its affiliate there, Beijing Hyundai, could not make the required payments for plastic fuel tanks and that it was “working to find a resolution”. South Korean media had reported the outstanding bill to be as much as $17m.
In June Hyundai reported a 65 per cent drop in sales in China — its largest market.
The drop in sales is in large part the result of Beijing’s economic retaliation against South Korean companies after Seoul began installing a US-owned and operated missile shield on the peninsula to defend against North Korea earlier this year.