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Hyundai To Suspend Production At South Korea Plant Due To Chip Shortage

The automaker reportedly will stop operation at its Asan plant on Monday and Tuesday because of a chip shortage.

The Asan factory turns out 3 lakh vehicles each year, including the Sonata and Grandeur sedans. expand View Photos
The Asan factory turns out 3 lakh vehicles each year, including the Sonata and Grandeur sedans.

Highlights

  • Hyundai to suspend manufacturing at its Asan plant for 2 days next week
  • Hyundai will again halt operation at the plant due to a chip shortage
  • The company produces Grandeur and Sonata sedans at the Asan facility

It was earlier this week when Hyundai Motor suspended production at its Asan plant because of a chip shortage. The South Korean carmaker has announced that it will again halt production at its Sonata-producing plant for two days next week due to an electric parts shortage. According to a report from IANS, the automaker will stop operation at its Asan plant on Monday and Tuesday. This Hyundai plant is located around 100 km south of Seoul that produces the Grandeur and Sonata sedans.

Also Read: Hyundai Motor Group Names New Chief For Mobility Division​

Hyundai has seven plants in South Korea, of which five are located in Ulsan whereas the other two facilities are located in Asan and Jeonju. Moreover, the company has ten overseas plants wherein four facilities are in China and one each in India, Brazil, Czech Republic, Turkey, Russia and the US. The combined capacity of these plants is around 5.5 million units.

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Hyundai will again stop operation at its Asan plant on Monday and Tuesday due to semiconductor shortage

The carmaker expects the four-day suspension will result in over 4,000 vehicles in production losses. Moreover, the company had also suspended operations at its Ulsan plant, situated 414 km southeast of Seoul, from April 7 to April 14 due to a parts shortage. Moreover, Hyundai produces Ioniq 5 and Kona EV cars at its Ulsan plant.

Also Read: Hyundai Motor Group Plans To Launch EVs In China Every Year Starting 2022​

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The suspension comes because of a shortage of semiconductor parts used in Kona's front vehicle camera system, along with an issue in Hyundai Mobis Company's production line, which rolls out the traction motor for the Ioniq 5. The carmaker expects production losses of 6,000 units of the Kona and 6,500 units of the Ioniq 5.

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