Ssangyong Motors, the nation’s smallest carmaker, said Sunday that it is estimated to have suffered 140 billion won ($111 million) in production losses due to a protracted strike by unionized workers.
The company said it is estimated to have had a production shortfall of 6,385 units in the past two months due to the labor strike, signaling that the automaker may post a huge deficit in the second quarter of the year.
Unionized workers at Ssangyong Motors have been on strike since April 25, occupying the carmaker’s sole plant in the city of Pyeongtaek, 70 kilometers south of Seoul, to protest a job-cut plan. In response, Ssangyong has closed the Pyeongtaek factory.
Ssangyong, which has been under court receivership since February, plans to cut 36 percent of its workforce, or 2,646 workers, as part of its survival bid.