Hyundai suspends production in South Korea because of a shortage of parts from China

Hyundai Motor Co. suspends production in South Korea due to the lack of parts supply from China. Thus, Hyundai has become the first global carmaker, who is forced to suspend work abroad due to the outbreak of coronavirus.

the Company faced shortages of parts for electrical wiring manufactured in the Chinese plant, where the production is stopped after the detection of cases of infection with coronavirus. The company can resume work on February 11-12, reports Bloomberg.

“the Company is evaluating steps to minimize operations, including seeking additional suppliers in other regions. Hyundai will closely monitor developments in China and will take all necessary steps for the normalization of operations,” the company noted.

the shutdown will affect all seven enterprises Hyundai in South Korea, which, in particular, produce new versions of the most popular sedans Hyundai — Sonata, and SUVs Genesis (luxury brand of the company).

Kia Motors Corp. also announced the suspension of operations at two plants in South Korea because of a shortage of parts produced in China, notes “Interfax”.

meanwhile, the number of cases of pneumonia caused by a new type of coronavirus, made in China 4 Feb 20438 people death observed in 425 cases.

According to the forecast of IHS, Markit, the spread of coronavirus in China can result in rapid closure of automobile companies in the country, and car production in China will decrease in the first quarter to 1.7 million units (- 32%).