Kia Motors' labour union has agreed to production cuts to match falling demand world-wide.

Hyundai, affiliate Kia and other Korean automakers have already cut production by reducing daily work hours and shuttering production lines.

In a statement cited by the Yonhap news agency, Kia said the 28,000-worker union has agreed on a "flexible production system" to overcome the "auto industry crisis" but no other details were given.

Kia had earlier cuts its global sales target to 1.6m vehicles from 1.6m.

Its worldwide vehicle sales fell 3% to 133,507 units last month, the company added.

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