Hyundai Motor Suppliers Abandon Business Due to Financial Difficulties... Concerns Over Production Disruptions of Palisade and Santa Fe

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] A Hyundai Motor Company supplier has decided to abandon its business due to worsening management difficulties caused by the prolonged COVID-19 pandemic. Hyundai Motor is currently discussing countermeasures.

On the 17th, according to Hyundai Motor labor and management, Myungbo Industry, a second-tier supplier based in Gyeongju, sent an official letter to Hyundai Motor and first-tier suppliers stating its decision to abandon its business due to management difficulties.

Myungbo Industry is a company that produces seat back covers and fuse boxes, employing about 50 people. These parts are supplied to models such as the Palisade, Santa Fe, Tucson, and Nexo.

Hyundai Motor labor and management estimated that the inventory of these parts remains at about the amount needed for night shifts or two days of work per vehicle model as of that day.

If the suspension of parts supply continues for a long time, the finished vehicle production line will inevitably be affected, so Hyundai Motor is currently seeking countermeasures.

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