Around 20 Hyundai Automotive Group top executives met at the weekend to decide how to run the company without their chairman, who is now under arrest.
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The executives decided to run each subsidiary separately, according to the Korea Herald.
Hyundai Motor vice chairman Kim Dong-jin told the newspaper that overseas plant projects that require the chairman’s decision may be delayed. Schedules for Kia’s new plant in Georgia, US, are still not agreed, although construction may begin next month, without an official ground-breaking ceremony. Development of Hyundai’s new plant in the Czech Republic has also been hit by delays.
Despite protests by executives that sales must not be affected, Hyundai’s April sales were down 13%. Hyundai sold about 215,000 vehicles in April, down from a provisional 246,126 units in March, according to Reuters.
The firm sold about 45,000 vehicles at home in April, down from around 51,400 in the previous month, and exported some 170,000 unit, also down from 195,000.
Separately the domestic market launch of the new Avante sedan is likely to be delayed because of a disagreement over manning the new production line. The line requires less workers than the previous line because it makes extensive use of modules, but unions are unwilling to allow workers to be moved elsewhere.
Hyundai Group chairman Chung Mong-koo was called out of the detention centre where he has been placed under arrest for questioning at the weekend, according to the Korea Herald.
Chung is being held on charges of embezzling 120bn won ($US127m) to create secret funds, which were then used to bribe politicians in return for business favours and to facilitate the transfer of wealth and corporate control from Chung Mong-koo to his son Chung Eui-sun, chairman of Kia Motor.
Prosecutors have estimated that damages to Hyundai Motor and its affiliates are in the region of 390bn won.
