Hyundai’s Newest Crossover Has Hit a Snag

Hyundai is trying to break into the crossover & SUV market, where profit margins are higher. However, Hyundai is facing increased labor costs amid worker issues at it’s production factory in Ulsan, South Kora. With the public release of their latest crossover, the Kona, scheduled for later this year, this labor issue couldn’t come at a worse time for Hyundai.

Key Takeaways:

  • The 2018 Kona, which we’ve so far seen only a portion of, is part of a better-late-than-never product push by the Korean automaker.
  • The spark that lit the flame was Hyundai’s decision to outsource the Kona’s bumpers in the interests of efficiency and quality, triggering a backlash from workers.
  • Meanwhile, the automaker is under investigation on both sides of the Pacific for its roll-out of recalls for older models equipped with potentially debris-clogged engines.

“Hyundai, which found itself lagging behind its rivals in the lucrative crossover and SUV market and figured it should do something about it, is having trouble getting its desperately needed subcompact crossover into production.”