Auto Service World
News   May 3, 2006   by Auto Service World

Hyundai in Trouble with Regulators

Korea’s largest automaker, Hyundai, has been cited by the government’s Fair Trade Commission, in a recent report on unfair trade practice.
The corporate regulator is now looking at taking legal action against the company, for what it says, are examples of unfair pressure being put on parts suppliers to cut costs.
Hyundai and its affiliate Kia Motors came under scrutiny recently, when they publicly called on their parts suppliers to cut their costs, a move that was widely acknowledged as an attempt to unload the burden of high material costs onto the smaller organizations.
According to Korean law, large conglomerates are banned from transferring costs to small and medium sized corporations, like component manufacturers, in tough economic times.
Other companies being investigated include GM-Daewoo, and up to five mobile phone companies.
Renault-Samsung and Ssangyong motor companies were cleared of any illegal trade practices.

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