Hyundai Estimates Substantial Losses in Wake of Massive Explosion in China
The recent explosion in the port city of Tianjin didn’t just rock northeast China–it affected people and business outside the blast radius. That includes South Korea’s automaker Hyundai Motors.
According to the latest news, Hyundai’s losses following the devastating explosion may exceed 160 billion won, or $136 million dollars. The loss comes as a critical time for Hyundai, as the automaker has already been struggling to maintain sales results and production demand.
Hyundai’s multi-million dollar loss caused by the Tainjin explosion–which was caused by a warehouse accident involving a shipment of explosives on Wednesday–involves the destruction of approximately 4,000 automobiles. Hyundai had been keeping many of its luxury vehicles on site nearby, including the Genesis and Equus sedans, which were severely damaged during the blast. The high-end models were being shipped from South Korea to be sold in China.
“It will take quite a long time to find out the detailed damages,” a Hyundai Motor representative stated in an interview. “All automobiles damaged from the explosion will be covered by our insurance, so there are no significant losses.”
While this financial loss is devastating for the company, our hearts go out to those whose lives have been forever impacted by this tragic event.
News Sources: The Korea Herald