Utilization Rates Remain Low
Some of Hyundai Motor's factories in Europe, which halted operations due to the spread of the COVID-19 virus in March, have begun to restart. Although their utilization rates are lower than usual with the minimum number of employees at work, the Korean automaker judged that keeping the production lines going would be better than leaving them idle.
Hyundai Motor's Czech subsidiary said on April 14 (local time) that it has resumed production in light of the fact that the automaker has volume to deliver this month and the spread of COVID-19 in the Czech Republic has been flattened. The Czech plant has been shut down since March 23 following the Czech government’s measures to restrict movement of people for public good. Hyundai Motor's Czech factory has 3,200 employees. Yet its employment creation effect is estimated at 20,000 jobs when jobs at its partners are taken into account. In the beginning, Hyundai Motor plans to operate two shifts instead of the normal three shifts.
Earlier, the automaker’s Russian plant has also been put into reoperation. We will operate the plant until April 17 and then decide on a future operation schedule," a company official said. However, usual three shifts will be reduced to one shift. This means that only a minimum number of workers will be at work.
With the spread of the COVID-19 virus, Hyundai Motor has locked down virtually all factories in the world except those in Korea and China. It is encouraging that some European factories will resume operations, but it is difficult to predict how long those factories will be able to stand as the COVID-19 spread can hardly be predicted.