Tianjin blasts hit Hyundai Motor
This photo taken on August 13, 2015 shows rows of burnt out cars after a series of explosions at a chemical warehouse hit the city of Tianjin, in northern China. A Chinese military team of nuclear and chemical experts began work on August 14 at the site of the two massive explosions in the city of Tianjin, state media said, as pressure grows for authorities to explain the cause of blasts that left 50 dead. /AFP-Yonhap
By Kim Yoo-chul
Huge explosions at a warehouse in Tianjin, China, have destroyed cars worth about 160 billion won ($136 million) from Hyundai Motor, Korea’s top car maker, according to sources, Friday.
“About 4,000 Hyundai Motor-branded cars were at the site,” an industry official said.
“They were all luxury models such as Genesis sedans. Assuming that all stacked cars were burnt, total losses will go up to 160 billion won.”
Hyundai Motor mainly sells cars in China via its Chinese joint venture ― Beijing Hyundai. The company’s plants in Korea make premium vehicles, all of which are exported to the Chinese market.
“For that reason, premium cars such as the Genesis, Equus and Carnival models, with an average unit price of 40 million won, were at the site,” said the official, adding the calculation of exact losses will take time as the Chinese government is investigating what caused the blasts at the warehouse where volatile chemicals were stored in the port city.
A Hyundai official conceded the blasts cost the firm. However, he said the explosions will not have any significant impact on its partnership with its major Chinese customers.
“Losses will be limited as damaged vehicles at the site will be covered by insurance, as the affected automobiles had yet to be delivered to clients,” the official said.
In 2004, Hyundai Motor suffered 11.4 billion won in losses when a ship delivering 1,058 vehicles sank after colliding with an oil tanker near the Straits of Singapore. But those losses were covered by insurance.
The blasts also affected other global carmakers.
Renault said more than 1,000 of its cars were severely damaged and Toyota Motor said a large number of windows at the site were broken.