Due to the car semiconductor supply shortage... Hyundai Motor Ulsan Plant 1 to shut down from the 7th to 14th next month

Production Disruptions Inevitable for Ioniq 5, Kona, Veloster, etc.
Possibility of Expansion from Plant 1 to Plants 2-5 Depending on Situation
Multiple Weekend Overtime Shifts in April Unable to Proceed Beyond Ulsan Plant 1

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] Due to the global shortage of automotive semiconductors, Hyundai Motor's Ulsan Plant 1 will shut down from April 7 to 14.

Hyundai Motor announced on the 30th that it has decided to close Ulsan Plant 1 from April 7 to 14. Hyundai Motor's Ulsan Plant 1, with an annual production capacity of 310,000 units, produces the first dedicated electric vehicle Ioniq 5, as well as Kona EV and Veloster.

This shutdown is due to a combination of factors including the global shortage of automotive semiconductors and issues that occurred in the production facilities for the Ioniq 5's drive motor. Earlier, Hyundai Motor had reduced its production plan for next month from 10,000 units to 2,600 units due to disruptions in the supply of Ioniq 5 drive motors.

Industry insiders expect that, following the shutdown decision, production cuts of approximately 6,500 units for the Ioniq 5 and 6,000 units for the Kona are inevitable. A Hyundai Motor official explained, "This shutdown is due to supply disruptions of the front camera semiconductor for the Kona and the drive motor module for the Ioniq 5."

The problem is that the production halt caused by the automotive semiconductor shortage may not be limited to Plant 1 but could extend to Plants 2 through 5. Currently, other plants are also barely conducting weekend overtime work in April. Kia has also canceled weekend overtime at its Hwaseong Plant in April. Inside and outside the company, the possibility of additional production stoppages depending on the semiconductor supply situation remains open.

Red flags have also been raised regarding performance. In addition to concerns about sluggish sales due to reduced production, it is reported that recent purchase prices have risen by an average of about 20% due to supply shortages, which is expected to negatively impact profitability. Currently, companies supplying automotive semiconductors to Hyundai Motor and Kia are understood to be purchasing some products at prices up to five times higher than usual.

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