Business

Hyundai halts US plant operations on chip shortage

S. Korean car giant adds maintenance work will be conducted at factory from June 16 to July 11

Updated 5 years ago · Published on 14 Jun 2021 2:10PM

Hyundai halts US plant operations on chip shortage
Hyundai has seven plants in South Korea – five in Ulsan, and one each in Asan and Jeonju – as well as 10 overseas, with four in China, and one each in the US, the Czech Republic, Turkey, Russia, India and Brazil. – Pixabay pic, June 14, 2021

SEOUL – Hyundai Motor Co, South Korea’s biggest carmaker by sales, today said it will suspend operations at its United States plant for three weeks due to a lack of semiconductors, as well as for routine maintenance, reported the Yonhap news agency.

Hyundai will stop work at its Alabama facility for one week from today on a chip shortage, and from June 16 to July 11 for maintenance work, said a company spokesman.

In recent weeks, chip shortages have continued to affect production by carmakers and other manufacturers in the US and other markets.

Hyundai halted operations at its plant in Tamil Nadu, India, for five days starting May 25 after two workers tested positive for Covid-19 and several others staged a sit-in at the factory on May 24 amid rising infection fears.

On the domestic front, the firm has suspended operations at some facilities due to the chip shortage.

Hyundai has seven plants in South Korea – five in Ulsan, and one each in Asan and Jeonju – as well as 10 overseas, with four in China, and one each in the US, the Czech Republic, Turkey, Russia, India and Brazil. Their combined capacity reaches 5.5 million vehicles.

Company affiliate Kia Corp, too, halted work at its US plant and one in Gwangmyeong, southwest of the capital here, last month over the same issue.

Kia said it is considering changing the current three-shift system at its Georgia factory to two shifts as early as this week.

The maker of the K5 sedan and Sorento SUV has eight plants in South Korea and seven abroad – three in China, and one each in the US, Slovakia, Mexico and India. Their overall capacity hits 3.84 million units.

Hyundai and Kia together form the world’s fifth-biggest carmaker by sales. – Bernama, June 14, 2021

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