Due to Automotive Semiconductor Shortage
Hyundai Motor Co. has temporarily suspended the operation of its factory in Russia due to a shortage of automotive semiconductor. Analysts say that the suspension may be prolonged if Western countries' sanctions against Russia begin to deal a blow to the Russian economy.
Hyundai Motor's factory in St. Petersburg, Russia will halt operations for five days from March 1, according to Russian media outlets. Earlier, Hyundai Motor also shut down its plant in Alabama for two days in January due to a lack of automotive semiconductors.
The shutdown of the Russian plant is said to have nothing to do with Western economic sanctions following Russia's invasion of Ukraine, but Hyundai Motor is keeping a close eye on the situation in Ukraine. Russia accounts for only 5.5 percent of Hyundai Motor and Kia's annual global sales.
Hyundai Motor and Kia have solidified their positions firmly in Russia. They rank second and third in the auto sales standings after Russian automobile brand Lada. Concerns are being raised that they may face difficulties for a considerable period of time as the value of the Russian rubble plunged due to economic sanctions by the U.S. and the EU.