Union's Consent Required to Ramp up Output
Hyundai Motor Co. is failing to increase its Palisade production volume despite the worldwide popularity of the flagship SUV. This is because unionized workers’ consent is required for an increase in production or overseas production.
The management of the company is considering releasing the SUV in the Chinese market. The company shut down its first plant in Beijing last year due to an oversupply and sluggish sales and it is reformulating its Chinese market strategy from scratch. The Palisade is necessary in that Chinese customers prefer large cars such as SUVs. It is the necessity of the consent that is making the management hesitate. At present, the Ulsan plant of the company is the only Palisade manufacturing plant and the management is considering exporting the SUV from Ulsan to China.
In the mid-size SUV market of the United States, the share of the model rose from 3.2 percent to 4.2 percent from September to December last year. Hyundai Motor America is hoping for local production but the headquarters is cautious for the above reason. In Russia, Hyundai Motor has advertised the product since last year but it is likely to be launched in the second half of this year at the earliest.
Hyundai Motor produced a total of 107,514 Palisades last year, including 52,299 units supplied to the domestic market.