Two GM factories commence operations in South Korea

General Motors Co (NYSE:GMSouthKorean )'s subsidiary resumed production at its two plants in the country this week following a two-week production halt due to procurement difficulties, a GM Korea representative told Reuters on Tuesday.

Since mid-July, the U.S. automaker's Korea operations have suspended production of all vehicles at its Changwon and No. 2 Bupyeong factories after a local supplier refused to provide auto components after requesting a price rise.

ERAE AMS, which supplies components for automakers like Volkswagen AG (OTC:VWAGY), Hyundai Motor Co, and BYD, refused to provide parts to GM Korea's plants and demanded a price increase.

Neither GM Korea nor ERAE AMS were able to comment when contacted by Reuters.

According to the Korea Automobile Manufacturers Association, GM Korea's Changwon and No. 2 Bupyeong facilities have an annual manufacturing capacity of around 70,000 vehicles. This represents almost 30% of GM Korea's entire yearly manufacturing capacity.

According to GM Korea, production at the No. 1 Bupyeong plant that produces the Trailblazer sport utility vehicle (SUV) has not been interrupted.