Hyundai Affirms Troubled BAIC Joint Venture

Hyundai Motor Co. shrugs off speculation that its strained relations with BAIC Motor Corp. might end their joint venture in China.

Disputes with suppliers forced the venture to suspend production twice within the past two weeks last month. Reports say BAIC wants the partnership to switch quickly to less costly local suppliers, but Hyundai is reluctant to abandon its South Korean supply base.

But Hyundai tells Reuters the venture will continue and says the two companies will “continue various dialogues to strengthen competitiveness in the Chinese market.”