"Stop and Go, But..." Hyundai Motor to Work Weekend Overtime to Compensate for Production Shortfall

Cargo Solidarity Union members conducting a publicity campaign in front of the Myeongchon Main Gate at Hyundai Motor Ulsan Plant

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor's Ulsan plant decided to work overtime on the weekend of the 11th. The supply of parts such as vehicle semiconductors had already been delayed, causing new car production to be unstable, but production disruptions worsened due to the transportation refusal by the Cargo Solidarity of the Korean Public Service and Transport Workers' Union (hereafter Cargo Solidarity), prompting this measure to compensate for the shortfall.

According to industry sources, the company decided on weekend overtime late in the afternoon the day before. With the shortage of parts causing the finished car assembly line to repeatedly stop and start, and the refusal to transport parts mainly by Cargo Solidarity members, production disruptions have continued for several days, leading to this compensatory action.

A Hyundai Motor official said, "Even if we work overtime, the line will not operate at 100%, and efficiency will inevitably decline due to continued difficulties in parts supply. Nevertheless, since we have not been able to meet the originally planned targets due to production disruptions, we are working overtime to produce even one more vehicle."

On the afternoon of the 10th, unfinished vehicles without license plates being transported individually, unable to use car carriers, are passing by the rally site of the Cargo Solidarity Union members in front of the Kia Motors production plant in Seo-gu, Gwangju.

Hyundai Motor's Ulsan plant is considered the largest finished car factory in Korea, producing about 6,000 vehicles per day on average. Although there are some differences between plants, the operating rate was reported to be around half. Since some parts transportation is being carried out mainly by non-union members, the plant has started operating on weekends to resolve backlogged orders. Until now, weekend or weekday overtime had hardly been possible due to the lack of parts such as semiconductors.

The Ulsan plant operates on a Just-In-Time (JIT) production system that minimizes parts inventory. This means numerous partner companies and logistics systems must work organically together. Even the absence of one or two parts inevitably causes overall production disruptions.

As the transportation of finally assembled new cars also faced disruptions, general office workers were deployed. During weekdays, support was provided by Hyundai Motor's domestic sales headquarters and others visiting each plant, and from the weekend, Hyundai Glovis, which normally handles delivery operations, decided to select specialized personnel to respond.

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