Due to the impact of COVID-19, Ssangyong Motor Pyeongtaek Plant to begin rotating shutdown from the 2nd

[Asia Economy Reporter Suyeon Woo] Due to the impact of the novel coronavirus infection (COVID-19), Ssangyong Motor has begun implementing a rotating shutdown at its Pyeongtaek plant to adjust production volume.

According to Ssangyong Motor on the 2nd, the company will conduct a rotating shutdown for employees working at the Pyeongtaek plant starting from that day. The plan is to operate the production lines flexibly by having workers alternate shifts at each line at least until the end of this month.

Initially, Ssangyong Motor considered a complete suspension of plant operations until mid-month, but decided on rotating shutdowns after determining that flexible line operation to adjust production volume would be more effective. A Ssangyong Motor official stated, "We plan to operate the plant flexibly throughout this month depending on the supply situation of parts."

Earlier, in February, Ssangyong Motor halted operations at the Pyeongtaek plant for a week due to supply disruptions of Chinese-made wiring harness parts. At that time, the lines were stopped due to parts supply issues, but this rotating shutdown appears to be a measure to control inventory levels amid a sharp decline in domestic and overseas market demand.

Ssangyong Motor Pyeongtaek Plant Assembly Line

Even before the COVID-19 crisis, Ssangyong Motor had been suffering from chronic deficits and recently requested policy fund support from the government. With the added impact of the COVID-19 issue causing a sharp drop in sales, fixed costs such as labor expenses continue to occur, which is interpreted as causing difficulties in normal plant operations.

In March, Ssangyong Motor's global sales were 9,345 units, a 31% decrease compared to the same month last year. Domestic sales dropped about 34% to 6,860 units, while exports also fell 22% to 2,485 units.

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