Will the Impact of 'COVID-19' Prolong?... Hyundai Kia Motors Factory Stops Again

Hyundai Motor Ulsan Plant 1 to Shut Down Additional Days from 18th to 20th
Kia Sohari Plant Also Halts Operations Until 19th

On the 11th, when some lines of Hyundai Motor's Ulsan plant, which had been completely shut down due to the COVID-19 crisis, resumed operations, employees were seen arriving at work. (Photo by Yonhap News)

[Asia Economy Reporter Kim Ji-hee] Hyundai Kia Motors is once again halting factory operations due to supply shortages of Chinese-made parts. This is because a China-based company supplying 'wiring harness' parts has still not been able to operate its factory normally due to the impact of the novel coronavirus disease (COVID-19).

According to industry sources on the 17th, Hyundai Motor will suspend operations at Ulsan Plant 1 for three days from the 18th to the 20th. Following that, Ulsan Plant 2 will also be closed on the 21st. Discussions are underway regarding suspensions at Ulsan Plants 3 and 5 as well. However, Hyundai plans to continue operating Ulsan Plant 4, even if the line runs with an empty conveyor belt, a practice known as 'gongpichi.'

Previously, Hyundai had sequentially stopped factory operations from the 4th to the 12th. Since then, it has minimized shutdowns and continued vehicle production. However, despite the resumption of operations at parts factories in China, supply has not yet returned to normal, leading to the decision for additional shutdowns.

A Hyundai Motor official explained, "We are actively working to secure parts and plan to stabilize supply to resume normal operations from the 21st. We will closely monitor the parts supply situation and operate each plant flexibly."

Meanwhile, Kia Motors has also extended the shutdown of finished vehicle lines at Sohari Plants 1 and 2 until the 19th. This follows the earlier decision on the 14th to halt operations on the 17th and 18th, marking another extension of the shutdown. Although the wiring harness factory in China resumed operations on the 15th, the attendance rate remains low, keeping the operating rate around 10%, making additional shutdowns unavoidable.