Hyundai Kia Overseas Factories Gradually 'Resuming Operations'... Is Relief in Sight?

Hyundai Kia Motors Yangjae Office (Photo by Yonhap News)

[Asia Economy Reporter Kim Ji-hee] Overseas plants of Hyundai Kia Motors, which had suspended operations due to the spread of the novel coronavirus infection (COVID-19), are gradually resuming production. However, it is expected that more time will be needed for full normalization, as operating rates have not yet reached normal levels.

According to the industry on the 18th, Hyundai Motor's Czech plant resumed operations on the 14th. It restarted production three weeks after entering temporary shutdown on the 23rd of last month, reducing shifts from the usual three-shift operation to two shifts.

As European countries have begun reviewing the easing of lockdown measures taken to prevent the spread of COVID-19, factories that had stopped operations according to government policies are cautiously restarting. Kia Motors' Slovakia plant, which took an earlier step, ended its two-week shutdown and resumed normal operations from the 6th of this month. Hyundai Motor's Turkey plant, which extended its shutdown period until the 19th of this month, is also expected to resume operations soon.

Hyundai Kia Motors' Saint Petersburg plant in Russia partially reopened on the 13th. Originally scheduled to be shut down until the 30th of this month, the plant advanced its reopening under strict quarantine conditions.

However, there are observations that it will be difficult to expect normal production activities for the time being, as there has been no news of resuming operations in major markets such as the United States and India.

For now, Hyundai Motor's Alabama plant will remain closed until the 1st of next month, and Kia Motors' Georgia plant until the 24th of this month. However, expectations for reopening are rising following U.S. President Donald Trump's announcement the day before about gradually normalizing economic activities within the country.

The reopening timing of the India plants remains uncertain. As the Indian government extended the national lockdown, shutdowns of local plants of Hyundai Motor's Chennai plant, Kia Motors' Andhra Pradesh plant, and parts suppliers operating in India are also expected to continue. Some speculate that the Indian government may allow early resumption of certain essential manufacturing to reduce economic losses caused by COVID-19.

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