XM3 Sunroof Produced at Wuhan Parts Factory in China
Supply Disruptions Continue Since Factory Restart... Production Expected to Resume in July
Supply Blockage Also Affects Boss Speakers for Mexico-Made Avante
Delivery Delays for Vehicles with This Option
[Asia Economy Reporter Su-yeon Woo] While the domestic automobile industry is overcoming the COVID-19 crisis with the new car effect, some new car production is being delayed due to overseas parts supply issues. So far, the problem has been limited to optional parts, but there is concern that it could spread to core components at any time.
According to the automobile industry on the 21st, Renault Samsung Motors recently announced that the delivery of the XM3 with the sunroof option is delayed due to parts supply issues caused by COVID-19, and production will resume after July. The XM3, launched in March this year, is a popular model selling 6,000 units per month in the domestic market, but buyers who pre-ordered the sunroof option in February have not received their cars for three months.
This is because the supply of sunroofs, produced as finished products at a European parts factory in Wuhan, China, is delayed. Although the operation of parts factories in China is gradually resuming as COVID-19 subsides, it is expected to take considerable time before full normalization. The backlog of orders must be prioritized, and quality re-inspection is necessary due to the restart of previously halted production lines.
However, Renault Samsung explains that the sunroof option accounts for only about 6% of XM3 contracts, so there is no significant impact on the overall vehicle delivery schedule. Realistically, creating new suppliers is not cost-effective or timely, so they plan to wait until the Chinese factory production fully normalizes.
Another popular model, Hyundai Motor Company's Avante, is experiencing a similar issue. The supply of BOSE premium speakers produced in Mexico is delayed, causing delays in the delivery of the top trim 'Avante Inspiration.' For those who selected the 'Platinum Plus' option package with added BOSE speakers, it is expected to take at least two months or more before vehicle delivery.
Initially, the Mexican government announced it would lift the lockdown policy due to COVID-19 and resume economic activities for essential industries such as automobiles from the 18th of this month, but it reversed the decision to early June. Due to confusion in government guidelines, the operation schedule of local factories has become uncertain, turning on a red light for the normalization of speaker supply produced in Mexico.
The problem is that such supply disruptions of some parts could spread to core components installed in all vehicles. If supply issues arise again in core parts like the 'Chinese-made wiring harness,' which halted all domestic automobile factories in February, it could pose a potential risk to the entire domestic automobile industry.
An industry official pointed out, "With exports blocked and domestic new car supply more important than ever, procurement issues caused by COVID-19 can resurface at any time. If it is a minor part, it can be managed somehow, but if there is a problem with core parts, it can affect the entire production schedule and delivery."
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