Hyundai, Kia to suspend plants next week on chip shortages
Hyundai Motor and its affiliate Kia said on Friday they will suspend some of their assembly lines for several days next week due to semiconductor shortages.
Hyundai Motor plans to halt the No. 5 Ulsan plant, which produces the Tucson sport utility vehicle and the Nexo hydrogen fuel-cell electric vehicle, from Monday to Tuesday and the No. 3 Ulsan plant that produces the Avante compact and the Venue subcompact on Tuesday, a company spokesman said.
Hyundai suspended the No. 1 Ulsan plant that manufactures the Kona subcompact SUV and the IONIQ 5 all-electric car from April 7-14 and the No. 4 Ulsan plant that rolls out the Porter pickup truck from May 6-7 due to electronic parts shortages.
Its Asan plant that assembles the Sonata and Grandeur sedans was suspended from April 12-13 and April 19-20 due to the same problems, reports Yonhap news agency.
Hyundai has seven domestic plants -- five in Ulsan, one in Asan and one in Jeonju -- and 10 overseas plants -- four in China and one each in the United States, the Czech Republic, Turkey, Russia, India and Brazil. Their combined capacity reaches 5.5 million vehicles.
Kia has joined Hyundai in suspending a domestic plant due to chip shortages. It plans to suspend the No. 2 Sohari plant that makes the Stonic subcompact SUV from Monday to Tuesday.
Kia has eight domestic plants in Korea and seven overseas ones -- three in China and one each in the United States, Slovakia, Mexico and India. Their overall capacity is 3.84 million units.
In a conference call on the companies' first-quarter earnings results last month, executives said an extended chip shortage will have an impact on the carmakers' second-quarter bottom line.
Chances are high that the carmakers will continue to suspend their plants in the second quarter as it takes time for their overseas chip suppliers to resume production following natural disasters and fires. - IANS
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