Ulsan Plant 4 Line 2 Closed on 25th... Overtime Work at Plant 3 on Weekend Also Canceled
[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Company, which had planned to gradually normalize domestic factory operations starting this week, is once again facing production disruptions. Following the shutdown of Line 2 at Ulsan Plant 4, which produces the Porter, on the 25th, the scheduled weekend overtime at Ulsan Plant 3 has also been canceled. This is due to the ongoing spread of the novel coronavirus (COVID-19) and the closure of a first-tier supplier's facility that delivers parts to the Ulsan plant as a result. ▶Related article on page 6
According to industry sources, Hyundai Motor will suspend operations of Line 2 at Ulsan Plant 4, which produces the Porter, for one day. This is because Seojin Industry, a first-tier supplier to Hyundai Motor, did not operate its factory until the previous day due to confirmed COVID-19 cases. Seojin Industry supplies C-frames and decks used in the Porter. As a result, Hyundai Motor has revised the line operation plans for this week not only at Plant 4 but also at Ulsan Plants 1 and 2. Line 1 at Plant 1, which produces the Kona and Veloster, was originally scheduled to produce the Kona normally but will now operate on a one-to-one alternating shift basis. Line 2 at Plant 1, which was scheduled to resume normal operations from the previous day, will also run intermittently until today.
For Ulsan Plant 2, where popular models are concentrated, production volume is expected to be about half of normal operation levels. Line 1 plans to produce 65-90% of its usual output from the previous day through the 26th. However, Line 2, which has about 1.5 times the production capacity of Line 1, is expected to operate at only around 30% capacity.
Currently, Ulsan Plant 2 is producing models with high demand such as the Genesis GV80 and Hyundai Palisade. Additionally, the shortage of wiring harnesses imported from China has not been resolved, making the operational status after the 27th uncertain. Consequently, concerns are rising that the delivery periods for these models, which are already known to be over six months, will continue to be delayed.
The other Ulsan plant lines are also struggling to operate normally due to the wiring harness supply shortage. The weekend overtime scheduled only at Ulsan Plant 3 has been canceled, and all lines continue to operate on an alternating shift basis. Hyundai Motor is reportedly deliberating on next month’s production plans as the situation is changing rapidly, to the extent that it is uncertain whether operations can continue after the 27th.
There are concerns that if another temporary shutdown occurs at supplier facilities under these circumstances, Hyundai Motor’s production could suffer further damage. An industry insider said, "With the wiring harness supply still unstable, if disruptions occur in the supply of other parts as well, running the factories may become meaningless. Especially, it is crucial that there are no problems in the supply of parts, like wiring harnesses, for which it is difficult to quickly diversify suppliers."
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