Hyundai, Kia to shut down South Korean factories next week due to chip shortage


Hyundai Motor and Kia have decided to temporarily suspend operations at their respective national plant for two days due to a shortage of chips.

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South Korean automakers to shut down production at factories for two days

Hyundai Motor and Kia will suspend operations at some of their assembly lines starting next week due to a semiconductor shortage. As reported by IANS, the two South Korean automakers have decided to temporarily suspend the operations of their respective national plant for two days due to a shortage of chips. Hyundai Motor will suspend production of assembly lines – number 5 and number 3 at the Ulsan plant next week on Monday and Tuesday. While the Tucson SUV and Nexo hydrogen fuel cell EV are produced from assembly line 5 at the Ulsan plant, the automaker uses assembly line 3 to manufacture models such as the sedan. Avante and the Venue subcompact SUV.

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Also read: Hyundai announces annual maintenance shutdown at Chennai plant until May 15, 2021


Hyundai deploys Venue subcompact SUV from assembly line 3 at Ulsan plant

Kia will also suspend manufacturing operations at a national plant due to a chip shortage. The manufacturer will stop production on assembly line number 2 at the Sohari plant on Monday and Tuesday. The automaker makes the Stonic subcompact SUV on this assembly line.

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Hyundai had previously suspended assembly line 1 operations at the Ulsan plant which deploys the Kona subcompact SUV and the IONIQ 5 all-electric car from April 7 to April 14. to the shortages of electronic parts that produce the Porter pickup truck. Additionally, Hyundai had temporarily halted production at its Asan plant from April 12-13 and April 19-20 due to the same issues.

Hyundai has seven domestic factories, including five in Ulsan, one in Asan and one in Jeonju. It has 10 factories abroad, including four in China and one each in the United States, Czech Republic, Turkey, Russia, India and Brazil. Kia, meanwhile, has eight domestic factories in Korea and seven overseas factories. Kia has three global factories in China and one each in the United States, Slovakia, Mexico and India.


Kia manufactures the Stonic subcompact SUV on assembly line number 2 at the Sohari plant

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Also read: Hyundai to invest $ 7.4 billion in US by 2025, with electric cars in the spotlight


At a company first quarter earnings conference, executives said a prolonged chip shortage could impact automakers’ second quarter earnings. Automakers may also continue to suspend factories in the second quarter, as overseas chip suppliers are slow to resume production following natural disasters and fires.

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