Industrial action has stopped output of a new SUV ahead of a key market launch.

Reuters reported Hyundai Motor workers in South Korea stopped building the Kona sport utility vehicle this week ahead of its US launch in protest against plans to reduce the number of assembly line staff.

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The union, which is also in annual talks with management over pay, warned that a wider strike was possible, the report said.

Reuters noted Hyundai had been talking with its labour union since October on production plans for the Kona.

The union claims the automaker wants to introduce more automation and outsource more assembly of key sections to part makers. Hyundai management has responded the union is making "irrelevant demands" such as requests for extra windows in the factory as part of the production discussions.

A union leader claimed, in a statement cited by Reuters, the automaker's decision to start production of the Kona on a new assembly line last week was made without consultation with the union and was unacceptable. A wider strike was possible "should there be another provocation by management".

Hyundai is launcing the US specification Kona at the Los Angeles show this week. It is already on sale in South Korea and Europe.

A two day loss of production so far was equivalent to 1,230 vehicles, Hyundai told Reuters in a statement.

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