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Supply Chain Collapse Forces Hyundai Motor to Halt Plants in Korea
Parts Suppliers in China Shut down Factories
Supply Chain Collapse Forces Hyundai Motor to Halt Plants in Korea
  • By Jung Min-hee
  • February 5, 2020, 10:01
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Hyundai Motor Co. has decided to shut down its plants in Korea due to a supply chain disruption.

Hyundai Motor Co. has decided to shut down its Korean plants due to a supply chain disruption arising from the spread of the Wuhan coronavirus.

The automaker said on Feb. 4 that it has decided to halt the operation of its plants in Ulsan, Asan, and Jeonju one by one and stop their production lines until Feb. 11. The carmaker finalized the plan after a consultation with the labor union.

This decision came as it has become difficult for Hyundai Motor to procure wiring harnesses, an essential part in the automobile assembly process. Hyundai Motor receives these parts from Korean companies that have production plants in China. Due to the Wuhan coronavirus outbreak, their factories in China were shut down, so Hyundai Motor has no choice but to suspend its operation due to an inventory shortage.

Immediately from the day, the automaker halted the operation of Line 1 of Ulsan Plant 5 that mainly produces Genesis models such as the G90, the G80, and the G70, and Line 2 of Ulsan Plant 4 which produces the Porter trucks. Other plants in Ulsan will stop their production processes sequentially staring on Feb. 5. The Asan plant, which produces the Sonata and the Grandeur, will be closed down on Feb. 7, while the Jeonju Plant, a commercial vehicle production base, on Feb. 6. Hyundai Motor plans to resume the operation of all its factories starting Feb. 11.