Hyundai, Kia Shut Down Their Factories, Stop Production: Find Out Why?

Hyundai and Kia facilities in South Korea have been shut down due to shortage of semiconductors. 

Hyundai and Kia facilities in South Korea have been shut down due to shortage of semiconductors. 


Component Shortages And Vehicles Affected

Some assembly lines in manufacturing plants will be suspended from next week due to semiconductor shortages such as airbag control unit (ACU).

The affected assembly lines include Hyundai’s number 3 and 5 in the Ulsan plant and Kia’s assembly line number 2 in Sohari plant from May 17-18. 

The Ulsan plant is responsible for production of the Tucson SUV and the Nexo hydrogen electric vehicle.

Plant 3 manufactures the Avante and the Venue. 

Previous Suspensions

Earlier, assembly line 1 in Ulsan which produces the Kona subcompact SUV and IONIQ 5 EV were suspended from Apr 7-14. 

Other suspensions followed from Apr 12-13 of its Asan plant and from Apr 19-20 for the same reasons.

Assembly line 4 in Ulsan that makes the Porter pickup truck was suspended from May 6-7. 

Both suspensions were carried out due to shortage of electric components. 

Hyundai Issues Apology

Hyundai’s delivery of orders for vehicles such as Tucson, Avante and Stonic will be delayed and an apology mail was sent out to customers. 

The mail sent by the vice president of the domestic business division, Wonha Yoo, explained that the supply of main conductors was low. 

Hyundai is working on finding other suppliers to source semiconductors and to fulfil deliveries quickly by streamlining production operations. 

Kia’s Q2 Bottom Line Affected

Kia will be suspending its second plant in Sohari which produces the Stonic SUV from Monday to Tuesday. 

They also cited an “extended chip shortage” as the reason behind the move which could impact their Q2 bottom line.

The suspension is likely to continue since overseas suppliers of chips require time to provide the same following recovery from natural disasters and fires. 

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