Hyundai Motor wage deal clears hurdle for new vehicle production

Hyundai Motor’s belated wage deal has removed a major risk to the carmaker’s production of new strategic vehicles, including the Avante, Grandeur and Tucson — three flagship models that will drive the carmaker’s earnings in the latter half of this year. According to the carmaker, Hyundai Motor’s management and its union reached a tentative wage agreement Tuesday, ending months of labor disputes that had disrupted vehicle production and increased financial pressure on workers and parts suppliers. The carmaker faced mounting production risks since July, when its union started strikes. Hyundai Motor’s lost sales are estimated to reach more than 1 trillion won ($723.5 million) due to the strike. However, with both sides compromising to restore normal production operations, the carmaker has avoided a worst-case scenario and cleared one of its biggest risks this year. Hyundai Motor plans to focus on assembling the key highly sought-after models for earnings recovery. One of the key issues that blocked the timely agreement was the introduction of new technologies, such as physical a