Hyundai Motor Co. said this week its first quarter net profit fell 15 percent as a labor dispute slowed car production in South Korea according to the Associated Press.
The automaker said net profit fell to 2.1 trillion won, or 1.9 billion in U.S. currency, between January and March, which is down from 2.5 trillion won net profit from a year earlier.
Sales did increase 6 percent to 21.4 trillion won, but operating profit declined 11 percent to 1.9 trillion won according to the Associated Press.
The company, which is the flagship unit of the world's fifth-largest automaker, Hyundai Motor, has blamed its lower profit on declining production at domestic plants. Hyundai claims this outweighed increased production from new plants in placed like Brazil and China.
In March, Hyundai got rid of overnight working schedules for workers, but has yet to come to an agreement with its labor union on how to compensate workers for weekend and holiday shifts according to the Associated Press.
Hyundai's Ulsan plant has yet to produce any vehicles during weekends since March. The company is working with the union and homes to come to an agreement to resume weekend production soon.
"Once we reach an agreement over the weekend shifts at the Ulsan factory, we will be able to meet our annual sales target," Chief Financial Officer Lee Won-hee said during a conference call with investors according to the Associated Press.
Japanese Prime Minister Shinzo Abe's goal to end deflation has driven down the value of the yen within the last year. Hyundai said it now expects the yen to average about 100 yen to the U.S. dollar in 2013, compared to the 85 yen the company averaged to the U.S. dollar in 2012.
Hyundai is aiming for 6 percent growth in 2013 vehicle sales to 4.66 million units.
"There will be an impact from the yen's decline but it will be within the range that we can manage," Lee said according to the Associated Press.
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