Due to the Impact of the Coronavirus, Kia Motors Also on the Verge of Halting Operations

[Asia Economy Reporter Woo Su-yeon] As the new coronavirus infection (Wuhan pneumonia) has led Hyundai Motor's entire factories to sequentially decide on shutdowns, Kia Motors, which had been holding out by securing parts inventory until the last moment, has also entered the countdown to suspension of operations.

According to the automotive industry on the 6th, Kia Motors' labor and management are scheduled to hold negotiations this afternoon regarding the suspension of domestic factory operations due to disruptions in parts supply from China. A shutdown of 2 to 3 days is expected until parts supply returns to normal, and especially since confirmed cases have occurred in nearby areas such as the Gwangju plant, the possibility of a temporary suspension of all factories for the safety of workers is also being discussed.

Until now, Kia Motors has procured 'wiring harnesses' with a composition of 80% from China, 6% domestically, and 14% from Southeast Asia. After this incident, Kia Motors has been focusing on securing as much inventory as possible by improving the procurement routes concentrated in China, such as increasing alternative supply lines to Southeast Asia and fully operating domestic parts factories.

Until the 4th, major factories such as Gwangmyeong Sohari Plant, Gyeonggi Hwaseong Plant, and Gwangju Plant operated without major issues, but from the 5th, due to the depletion of inventory parts, they began operating 'gongpichi' (a method of running the conveyor belt without placing the car body on the production line), effectively starting production cuts.

Kia Motors, which tried to prevent line shutdowns as much as possible by various means, ultimately surrendered before this national disaster. Kia Motors' labor and management will begin negotiations this afternoon and are expected to make a final decision by tomorrow.

A representative of the Kia Motors labor union said, "We will check the parts supply situation for each line and hold discussions with the company regarding production disruptions," adding, "We will do our best to ensure the safety of union members by monitoring the COVID-19 situation in real time."

Since last week, due to the impact of the coronavirus originating from China, the overall domestic automotive industry, including Hyundai Motor, SsangYong Motor, Renault Samsung, and Kumho Tire, has experienced a parts supply crisis and suspended domestic factory operations. Korea GM, which is holding out with the last remaining parts, will also decide today whether to reduce production or suspend operations at its factory next week.

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