Will Hyundai Kia Motors Resume Normal Operations After the 11th?

[Asia Economy Reporter Kiho Sung] As the domestic complete vehicle industry continues to suspend operations due to the novel coronavirus infection, it is difficult to expect normal operation for the time being. However, some Chinese parts factories have opened and started operating, raising hopeful expectations that normal operations may be possible as early as mid-next week.

According to the automotive industry on the 9th, Hyundai Motor Company and Kia Motors plan to suspend factory operations on the 10th. Renault Samsung Motors will also take a four-day break starting on the 11th, and SsangYong Motor will halt production until the 12th. Korea GM is closely monitoring the situation while checking inventory levels.

However, with China deciding not to extend the suspension caused by the novel coronavirus any further, domestic companies have breathed a sigh of relief. The factories producing 'wiring harnesses,' which triggered this suspension, began partial operations on the 6th.

Because of this, there is a forecast that next week will be a turning point for the domestic complete vehicle industry's suspension period.

On the 11th, operations are scheduled to resume at Hyundai Motor's Ulsan Plant 2, which produces the Palisade and GV80, as well as Kia Motors' Hwaseong Plant, which manufactures the K series. Other factories plan to reopen on the 12th. Hyundai and Kia's Chinese factories will restart operations on the 17th.

A Hyundai Motor official explained, "The operation of the Chinese factory on the 6th should be seen as a trial run for full-scale production," adding, "We will monitor the operation over the weekend and begin internal discussions for normal operations starting on the 10th."

In this regard, Hyundai Motor President Young-woon Gong said on the 7th, "We understand that factories with high customer demand will be prioritized and restarted quickly."

If domestic complete vehicle manufacturers only implement the scheduled suspension and then immediately resume normal operations, it is expected that the worst-case scenario, such as delivery delays, can be avoided.

The key issue is the operation status of factories and logistics within China. An automotive industry official said, "I understand that Hyundai's Chinese factory is not operating at 100%. Also, there is an atmosphere where Chinese employees are reluctant to come to work due to the novel coronavirus infection," adding, "Even if the factories operate fully, the current logistics situation in China cannot be guaranteed, so we need to monitor the situation until next week."

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