Hyundai And Kia To Halt Operations At South Korea Plants Next Week Due To Chip Shortage

Hyundai Motor and Kia will be suspending operations at some of their assembly lines starting next week due to a shortage of semiconductors. As reported by IANS, both the South Korean carmakers have decided to temporarily halt operations at their respective domestic plant for two days due to chip shortage. Hyundai Motor will suspend production at assembly lines - number 5 and number 3 at the Ulsan plant next week on Monday and Tuesday. While the Tucson SUV and the Nexo hydrogen fuel-cell EV are produced from the assembly line 5 at the Ulsan plant, the carmaker employs assembly line 3 to manufacture models such as the Avante sedan and Venue subcompact SUV.

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Hyundai rolls out Venue subcompact SUV.from the assembly line 3 at the Ulsan plant

Kia will also be suspending manufacturing operations at a domestic plant because of a chip shortage. The carmaker will halt production at the number 2 assembly line at the Sohari plant on Monday and Tuesday. The carmaker makes the Stonic subcompact SUV at this assembly line.

Hyundai had previously suspended operations at the Ulsan plant's assembly line 1 that rolls out the Kona subcompact SUV and the IONIQ 5 all-electric car from April 7 to April 14. It also halted production at the number 4 Ulsan plant from May 6-7 due to electronic parts shortages that produce the Porter pickup truck. Moreover, Hyundai had temporarily halted production at its Asan plant from April 12-13 and April 19-20 because of the same problems.

Hyundai has seven domestic plants, of which five are located in Ulsan, one in Asan and one in Jeonju. It has 10 overseas plants wherein four in China and one each in the United States, the Czech Republic, Turkey, Russia, India and Brazil. Kia, on the other hand, has eight domestic plants in Korea and seven overseas plants. Kia has three global plants in China and one each in the United States, Slovakia, Mexico and India.

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

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During a conference meeting for the companies' Q1 earnings results, executives said an extended chip shortage could impact automakers' second-quarter bottom line. The carmakers reportedly might continue to suspend their plants in the second quarter as well, as it takes time for overseas chip suppliers to resume production following natural disasters and fires.