Jeonbuk Province Takes Action to Minimize Damage to the Complete Vehicle Industry

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] As the domestic automobile industry temporarily halts or announces the suspension of factory operations due to the depletion of Chinese-made parts inventory amid the spread of the novel coronavirus infection, Jeonbuk Province has decided to take measures to minimize damage to the completed car industry within the province.

According to Jeonbuk Province on the 5th, Hyundai Motor's Ulsan plant and Ssangyong Motor's Pyeongtaek plant stopped operations from the 4th, and Hyundai Motor's Jeonju plant has announced a shutdown from the 6th to the 11th.

The temporary suspension of factory operations in the domestic automobile industry is due to the depletion of inventory of Chinese-made parts called "wiring harness."

The first-tier supplier to Hyundai Kia Motors that delivers wiring harnesses moved its production line from Korea to China to reduce labor costs, and as the Chinese factory faced production disruptions due to the coronavirus, this measure was taken. It is known that the domestic factories currently have about one week's worth of inventory secured.

According to Hyundai Motor, Kyungshin Co., Ltd., the local Chinese wiring harness production plant, is under forced shutdown until the 9th.

However, if the forced shutdown of Kyungshin Co., Ltd. in China is lifted, production is expected to resume from the 10th, and domestic parts supply is anticipated to be possible from around the 12th.

Jeonbuk Province is strengthening communication by establishing an emergency hotline with the automobile industry in the province and is taking swift action such as identifying difficulties.

Jeonbuk Province plans to build an on-site support team with the province, city and county governments, the Automobile Convergence Technology Institute, and the Economic and Trade Promotion Agency for 161 parts supplier companies in the province, and will consider emergency management stabilization fund support* if necessary.

A Jeonbuk Province official said, "Hyundai Motor's partner companies in the province have already received prior shutdown information and are responding accordingly, cooperating closely with Jeonbuk Province," and added, "We plan to establish an emergency hotline for Hyundai Motor's Jeonju plant and provide support if needed."

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