According to reports, GM Daewoo Auto & Technology Co. said its main plant in Bupyeong, South Korea, has shut down after Kumho and Hankook cut off tire shipments.
GM Daewoo filed for a preliminary injunction with the Seoul Central District Court in an effort to end the embargo.
Both tiremakers, according to reports, want a 12% price increase from GM Daewoo to offset higher raw materials and energy costs, and do not feel the automaker has given them fair consideration. Both have vowed to immediately resume supply if GM Daewoo accepts the increase.
The tire embargo has not impacted GM Daewoo’s other plants in South Korea. (Tire Review/Akron)