Hyundai suspends production at plant in South Korea over chip shortage


The automaker is reportedly shutting down operations at its Asan plant on Monday and Tuesday due to a chip shortage.

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The Asan plant produces 3 lakh vehicles each year, including the Sonata and Grandeur sedans.

It was earlier this week when Hyundai Motor suspended production at its Agan plant due to a shortage of chips. The South Korean automaker has announced that it will halt production at its Sonata production facility again for two days next week due to a shortage of electrical parts. According to an IANS report, the automaker will shut down operations at its Asan plant on Monday and Tuesday. Hyundai’s Agan plant, located about 100 km south of Seoul, produces the Grandeur and Sonata sedans.

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Hyundai has seven factories in South Korea, five of which are in Ulsan while the other two factories are located in Asan and Jeonju. In addition, the company has ten factories abroad, including four in China and one in India, Brazil, Czech Republic, Turkey, Russia and the United States. The combined capacity of these factories is approximately 5.5 million units.

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Hyundai to shutdown again at its Asan plant on Monday and Tuesday due to semiconductor shortage

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The automaker predicts that the four-day suspension will result in production losses of more than 4,000 vehicles. In addition, the company had also suspended operations at its factory in Ulsan, located 414 km southeast of Seoul, from April 7 to 14 due to a shortage of parts. Additionally, Hyundai produces Ioniq 5 and Kona EV cars at its Ulsan plant.

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The suspension is due to a shortage of semiconductor parts used in Kona’s vehicle front camera system, as well as a problem in the production line of the Hyundai Mobis company, which is deploying the traction motor for the Ioniq 5. The automaker expects production losses of 6,000 Kona units and 6,500 Ioniq 5 units.

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