Hyundai Motor Stops Genesis Production Line... Is an Auto Industry 'Shutdown Crisis' Coming?

[Asia Economy Reporter Kiho Sung] Due to the impact of the novel coronavirus, production in the domestic automobile industry is being halted one after another. On the 4th, Hyundai Motor's Ulsan plant stopped its production line due to the suspension of Chinese parts supply, and Kia Motors also began adjusting its production speed. The situation is not much different for other companies, putting the domestic automobile industry in a crisis of a 'shutdown situation.'

According to Hyundai Motor, production was halted on one of the two lines at Ulsan Plant 5 that morning. The stopped Line 51 produces three models: Genesis G90, G80, and G70. The newly released sport utility vehicle (GV80) still has parts in stock, so production is currently ongoing.

This production halt was triggered by a shortage of 'wiring harness' imported from China. Wiring harnesses, bundles of wiring, vary by vehicle type and model, so they are parts for which large inventories are not maintained. According to the industry, each company typically keeps about one week's worth of inventory. These products are mainly produced in China, and with Chinese factories shutting down due to the novel coronavirus situation, the burden has increased further.

Hyundai Motor's labor and management held a factory operation committee meeting that morning to discuss future countermeasures.

In the case of Kia Motors, unlike Hyundai, there is still a surplus of parts, but after this week, the depletion of inventory is expected to lead to a crisis of production line suspension. Currently, it is reported that production halts or similar measures will not be implemented until the end of this week.

Ssangyong Motor decided to suspend operations at its Pyeongtaek plant from the 4th to the 12th due to parts shortages. Korea GM and Renault Samsung Motors are reported to have no significant impact yet but canceled all overtime work last weekend.

The industry is concerned not only about wiring harnesses but also other products facing supply disruptions due to the coronavirus. An automobile industry official emphasized, "Most parts factories have been relocated to China for reasons such as labor costs and cost reduction," adding, "If the situation worsens, countermeasures will be necessary."

This content was produced with the assistance of AI translation services.