Hyundai Motor to Suspend Production at All of Its Plants in Korea
Date: Tuesday, February 4, 2020
Source: The Wall Street Journal
Hyundai Motor Co. (005380.SE) has decided to suspend production at all of its plants in Korea as its supply chain has been crippled by the coronavirus outbreak in China.
South Korea’s top car maker said in an emailed statement Tuesday that schedules for suspension would vary by line, as it would seek suppliers outside of China.
The company had to shut down one of its major assembly lines in the southern city of Ulsan on Tuesday due to a lack of auto components, as its China-based parts suppliers have suspended work following the viral outbreak, a Hyundai spokeswoman said.
The company said it was reviewing various measures to minimize the disruption of its operations and would closely monitor developments in China.
The car maker has seven major factories in South Korea, including five in Ulsan and another 10 plants overseas.
Hyundai Motor together with sister firm Kia Motors Corp. (000270.SE) is the world’s fifth largest car maker by sales.