"Line Stopped and Emptied" Tucson Faces Export Block... Will It Revive as a New Model?

Due to Domestic and International Demand Decline... Early Introduction of 4th Generation New Model

2020 Tucson (Photo by Hyundai Motor Company)

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor's flagship sports utility vehicle (SUV), the 'Tucson,' is facing a crisis due to the novel coronavirus disease (COVID-19) outbreak. Production lines are being left idle or shut down as demand decreases in major export countries such as the United States.

According to industry sources on the 15th, Hyundai Motor's Ulsan Plant 5, Line 2, which produces the Tucson, has entered a temporary shutdown for one week until the 17th. Excluding the general election voting day holiday, the actual shutdown period is four days. The Tucson produced on Ulsan Plant 5, Line 2 is exported to North America and the Middle East, but recent COVID-19 spread has blocked export routes.

Another line producing the Tucson, Ulsan Plant 2, has not completely escaped the impact of the COVID-19 situation. However, instead of stopping the plant, it continues to operate the line while leaving it idle. Hyundai Motor plans to operate about 1,000 Tucsons in a "ghost shift" over two weeks starting this week due to decreased North American export volumes.

Accordingly, Hyundai Motor is considering an early introduction of the 4th generation new Tucson. Since the new Tucson is scheduled to be launched this year, the production volume of the existing Tucson must be reduced, and the plan is to finish production of the old Tucson earlier than originally planned. Domestic sales of the Tucson have already declined ahead of the new model launch. The Ulsan plant has been producing some units of the new Tucson since last week.

The new Tucson is a complete redesign (full change) model of the 3rd generation Tucson, which was launched in 2015. The Tucson holds special significance for Hyundai as a representative domestic SUV and as the best-selling SUV within the brand in the U.S. market. Expectations are high as the complete redesign is expected to offer a diverse engine lineup including gasoline, diesel, hybrid, and high-performance N Line variants.

An industry insider said, "It is true that Hyundai has less incentive to persist with production related to the 3rd generation Tucson amid declining domestic and international demand," adding, "Although there are issues to consider such as overall new car plans, it is worth considering turning this crisis into an opportunity by quickly launching a new volume model."

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