Jan 3 Automotive parts supplier Visteon Corp said its South Korean unit Halla Climate Control Corp's relations with Hyundai Motor Corp remained strong, after a media report that the car maker was changing its suppliers.
The Korea Economic Daily said Hyundai Motor changed its supplier to Denso Corp for its new Sonata sedan, which will be produced at the automaker's U.S. plant in Alabama from next year.
Shares of Halla, which makes automobile air conditioning and heating systems and counts Hyundai as its largest customer, closed down 11 percent in Seoul on Thursday.
Visteon shares closed flat at $53.32 on the New York Stock Exchange.
"HCC's relationship with Hyundai remains strong and we expect it will be further strengthened with the integration of Visteon's climate business into HCC," Visteon Chief Executive Timothy Leuliette said.
Visteon did not comment on the Sonata contract but said, "HCC does not win 100 percent of Hyundai's climate business and does not participate in every Hyundai vehicle program."