SEOUL (Reuters) - Hyundai Motor Co (005380.KS) on Friday said its Chinese joint venture with BAIC Motor Corp Ltd (1958.HK) has resumed making payments to suppliers, easing concern about another plant suspension.
The South Korean automaker last week restarted a Chinese car plant which had been suspended as delayed payments prompted one firm to stop supplying parts.
The delayed payments came as sales slumped at the Chinese venture following diplomatic tension between China and South Korea as well as competition from local brands.
“The two companies (Hyundai and BAIC) have wrapped up discussions given the difficulty with suppliers and will pursue continued cooperation,” Hyundai said in a statement.
“We plan to complete payments as soon as possible,” the automaker said.
BAIC was not immediately available for comment.
Reporting by Hyunjoo Jin; Editing by Christopher Cushing