Hyundai Motor Faces Production Disruptions for Kona and Palisade... Parts Supply Halted Due to Partner Company Accident
[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Company is expected to face disruptions in the production of some vehicles at its Ulsan plant due to a halt in parts supply caused by an industrial accident at a partner company.
According to industry sources on the 12th, at around 8:30 PM the previous day, a worker died in an accident while working on the crash pad foaming line at Deokyang Industrial's factory in Hyomun-dong, Buk-gu, Ulsan. The worker is reported to have been involved in an accident with the foaming line mold device. This incident caused the suspension of production on four foaming lines. From the morning of the same day, an investigation by labor inspectors from the Ministry of Employment and Labor has been underway.
The suspension of the foaming line production is expected to cause production disruptions at Hyundai Motor's Ulsan plant as well. Since the driver's seat module is bulky, the finished car plant does not keep a large inventory but receives supplies several times a day. Deokyang Industrial's factory supplies parts to the Genesis line producing the GV80 and the new G80, as well as to key models like the Palisade at the Ulsan plant. Production disruptions are inevitable, at least for the large sport utility vehicle (SUV) Palisade and the small SUV Kona.
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A Hyundai Motor official said, "Production disruptions may occur immediately for some models with insufficient inventory. However, since the weekend is approaching, the actual production disruption is expected to be minimal."
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