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Hyundai considers production cuts in China amid falling sales

South Korean automaker offers retirement incentive program for employees

The flags of South Korea and China are seen at a plant of Hyundai Motor on the outskirts of Beijing.   © Reuters

SEOUL -- Hyundai Motor is considering making cuts to production in China and offering employees early retirement in a bid to lower costs as the world's biggest market for car sales reverses into decline after a 28-year growth run.

South Korea's top automaker, which on Thursday announced its first quarterly net loss since 2011 as a result of the Chinese slowdown, said it planned to reduce manufacturing in China to improve efficiency at its factories. Hyundai runs four factories in China -- three in Beijing and one in Hebei -- employing 16,000 employees. Caixin, the Chinese news outlet, reported that the company was seeking some 1,500 job cuts.

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