Sojitz Corp. has halted operations at its auto production subsidiary in Venezuela because of a prolonged union dispute, company officials said Wednesday.
There are no immediate prospects for resuming operations at Caracas-based MMC Automotriz S.A., raising concerns it could negatively affect vehicle supplies to customers — mainly Mitsubishi Motors Corp. and Hyundai Motor Co., they said.
Sojitz officials said the factory was halted Monday "in order to maintain safety" as the workers' boycott intensified.
The factory has been troubled by disputes over employment conditions that have sometimes bubbled over into physical confrontations.
In January, two workers died in clashes between police and a group of workers who seized the factory.
The siege ended in March and the factory resumed operations in April.
But workers began sabotaging production again earlier this month, Sojitz officials said, adding that the company plans to hold talks about conditions with union representatives and the Venezuelan government.
MMC said its sales in Venezuela plunged more than 70 percent in the April-June quarter from the same period last year.