Hyundai to suspend production in South Korea due to coronavirus effect – the right address for financial news

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Hyundai plans to suspend production in South Korea due to the coronavirus effect.

In Hong Kong, the first case of death due to coronavirus was observed, while the number of people who died due to coronavirus exceeded 420. Many global automakers, including Ford, the French automaker PSA Peugeot Citroen, and the Japanese automaker Nissan and Honda Motor, have suspended production at some of its factories in China this week in accordance with Beijing’s guidelines.

A union official who did not want his name to be disclosed due to the sensitivity of the issue, announced that production will be suspended between 7 February-10 February or 11 February in most of Hyundai’s South Korean factories.

Hyundai spokesperson said the suspension programs will change according to the production line.

Automobile industry officials previously told Reuters that the suspension of production, which has been evaluated by the Hyundai administration since Monday, is due to the shortage of auto parts called cable harnesses.

According to the information provided by the senior researcher of the Korean Industrial Economics and Trade Institute, Lee Hang-koo, Hyundai and its subsidiary Kia Motors do not have a large stock of parts produced in the majority of China.

“Hyundai and Kia may be more affected than their competitors, as they tend to import more parts than other global automakers,” said Lee.

According to trade data, South Korea imported $ 1.56 billion of auto parts from China in 2019, while it imported $ 1.47 billion in 2018.

SOURCE: REUTERS

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