Hyundai Motor: "Semiconductor Shortage in May Similar to April... Production Adjustments Expected"

"Efforts to Minimize Production Disruptions through Alternative Component Development and Annual Orders for Inventory Securing"

[Asia Economy Reporter Ki-min Lee] Hyundai Motor expressed concerns that some vehicle production may be halted next month due to the ongoing shortage of automotive semiconductors. In response, Hyundai plans to minimize production disruptions through alternative component development, inventory securing, and production plan adjustments.

Seo Kang-hyun, Vice President and Head of Hyundai Motor's Finance Division, stated during the Hyundai Motor 2021 Q1 earnings conference call on the 22nd, "We managed semiconductor components company-wide to minimize production disruptions, resulting in operations without large-scale shutdowns in Q1, so the impact on production was minimal. However, next month, production adjustments similar to or greater than this month are expected."

Hyundai Motor had suspended operations at Ulsan Plant 1, Asan Plant, and some overseas plants this month due to the semiconductor shortage. Vice President Seo commented, "While automobile demand is recovering, external factors have prolonged the semiconductor supply difficulties. We see the possibility of production plan adjustments."

He added, "We will strive to minimize production disruptions by prioritizing items, promoting alternative component development, securing inventory through annual orders, and adjusting production plans."

Furthermore, he said, "Due to the current semiconductor shortage, it is difficult to determine the annual production plan. We will provide related information to investors in the future."