Hankook Tire & Technology, a supplier to major automakers, saw shipments plummet, according to Reuters.
The shipping issues are the result of a week-long truckers’ strike in South Korea.
Truckers strike for low wages amid rising fuel prices around the world.
South Korea’s striking truck drivers are causing supply chain problems for major automakers, reports Reuters.
Han kook Tire & Technology Co Ltd, a leading global tire brand, is a key supplier for automobile manufacturers such as Mercedes-Benz and Volkswagen. The company saw its daily shipments drop by around 50% due to the protest by truckers in South Korea, a spokesman for the company told Reuters.
Han kook Tire & Technology did not immediately respond to Insider’s request for comment made outside of normal working hours.
640,000 tires, worth more than $44 million, had encountered shipping problems on Sunday, according to a statement from South Korea’s Ministry of Industry, reported by Reuters.
Monday marks the seventh day of the strike as thousands of workers protest low wages and lack of government subsidies amid rising fuel prices around the world. The strike is estimated to have caused South Korean industries losses of around $1.24 billion, according to the statement from the country’s Ministry of Industry.
The week-long strike has significantly affected the country’s auto industry. About 5,400 vehicles, worth about $200 million, lost production on Monday, according to the statement from the Ministry of Industry.
South Korea’s Ministry of Industry did not immediately respond to Insider’s request for comment made outside of normal working hours.
South Korean automaker Hyundai has also faced major production cuts since the strike began. On Friday, strikers cut production at Hyundai’s Ulsan plants to a tenth of its usual output, union officials told Reuters.
Hyundai’s factories in Ulsan produce about 6,000 cars a day and the strike on Friday cost Hyundai about 3,800 vehicles, by Reuters.
The disruptions in South Korea are another blow to the global supply chain which has been plagued by disturbances of meaning following the COVID-19 pandemic and the war in Ukraine.
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