Hyundai Motor Resumes Operations Today Starting with Ulsan Plant 2... GV80 and Other Shipments Unavoidably Delayed
[Asia Economy reporters Suyeon Woo and Jihee Kim] Hyundai Motor Company's domestic factories, which had been shut down due to the novel coronavirus infection (Wuhan pneumonia), resumed operations on the 11th, starting with the production lines for Palisade and GV80. However, due to shipment delays caused by the temporary shutdown, the GV80, one of this year's most popular models, is expected to be delivered to customers around the end of this year.
According to the automotive industry, Hyundai restarted the Ulsan Plant 2 production lines, which manufacture Palisade, GV80, and Santa Fe, from that day. With the supply of Chinese-made wiring harnesses easing, production is being normalized sequentially by factory line, focusing on popular models.
From the 12th, operations will resume on Ulsan Plant 4 Line 1, which produces Palisade and Starex, and Plant 5 Line 2, which produces Nexo and Tucson. On the other hand, Hyundai's Jeonju Plant (commercial vehicles), which was deprioritized in supply, has extended its shutdown until the 20th for lines producing County, general buses, and express buses, and until the 27th for lines producing ultra-low-floor buses and Solati.
On the morning of the 11th, when some production lines at Hyundai Motor Company's Ulsan plant, which had been completely shut down due to the impact of the novel coronavirus infection outbreak, resumed operation, employees were arriving at the Hyundai Motor plant in Buk-gu, Ulsan. Photo by Yonhap News
View original imageAlthough Hyundai has begun partial factory restarts, shipment delays caused by the novel coronavirus situation are expected to lengthen customer waiting times somewhat. The Grandeur facelift, released in November last year, was already facing high customer demand before the shutdown, leading to labor-management disputes over increased production. The GV80 accumulated 20,000 pre-orders within three days of its launch, with orders approaching this year's target of 24,000 units.
The GV80 employs a made-to-order production system, which is complex, and the recent coronavirus situation has caused production disruptions. Sales networks are informing customers that new vehicles will likely be available only by the end of the year. If labor-management negotiations do not lead to increased production, shipment backlogs similar to those experienced with the Palisade may recur. A Hyundai dealership representative said, "Even if you place an order now, delivery will likely be around the end of this year," adding, "Without additional production increases, contracts for this year's supply may soon be finalized."
Kia Motors is in a similar situation. While maintaining operations focused on popular models such as Sorento, Mohave, and the K series, factory lines with lower priority have extended their shutdowns until as late as the 14th. The Hwaseong Plant, which produces Sorento and Mohave, is operating at a low rate, and Gwangju Plant 1, which produces Seltos, will resume normal operations from the 12th. Meanwhile, Sohari Plant and Gwangju Plant 2 have extended their shutdowns until the 13th, and Gwangju Plant 3, which produces Bongo, will remain closed until the 14th.
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Renault Samsung entered a temporary shutdown from that day until the 14th, lasting four days. A Renault Samsung official stated, "This decision was unavoidable due to internal circumstances in China. The company will continue normal operations during the shutdown period and will receive deliveries from domestic parts suppliers as usual," adding, "Production lines are expected to resume normal operations from the 17th, when Chinese parts are resupplied."
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