Kia Motors to Close All Factories on the 10th... Factory-Specific Consultations from the 11th (Update)

[Asia Economy Reporter Su-yeon Woo] Due to parts supply disruptions caused by the novel coronavirus infection (Wuhan pneumonia), all Kia Motors factories will simultaneously halt operations on the 10th. From the 11th, production schedules will be adjusted through consultations tailored to the characteristics of each branch.

On the afternoon of the 6th, Kia Motors labor and management held discussions regarding the suspension of domestic factory operations due to parts supply disruptions from China. As a result of the talks, it was decided to stop operations at all factories after the weekend, starting on the 10th. However, the production lines manufacturing military vehicles will continue without interruption, and the engine and transmission factories will discuss operation plans through factory-specific consultations.

Starting from the 11th, Kia Motors plans to establish flexible production plans at the factory level by line, considering the status of material procurement. Additionally, labor and management will continuously share information about parts suppliers and discuss long-term countermeasures.

The 'wiring harness' part, which has caused the current parts supply issue, reportedly has enough Kia Motors inventory to continue production until the 7th. As the Chinese authorities extended the Lunar New Year holiday until the 9th of this month to prevent the spread of the novel coronavirus, suppliers providing wiring harnesses to domestic companies have collectively halted production in China.

Until now, Kia Motors has procured wiring harnesses with an 80% share from China, 6% domestically, and 14% from Southeast Asia. Following this incident, Kia Motors has focused on securing maximum inventory by increasing alternative supply lines in Southeast Asia and operating domestic parts factories at full capacity, improving the previously China-centric procurement routes.

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

Kia Motors, which tried to prevent line shutdowns by various means, ultimately had to surrender in the face of this national disaster. A Kia Motors official stated, "We will devote all efforts to ensuring the safety and health of employees, as well as quarantine and disinfection of imported parts at each factory."

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