Hyundai Motor to suspend production in South Korea due to chip shortage
On Monday, Korea Economic Daily had reported, quoting the auto industry that South Korea’s Hyundai Motor Co has plans to impose provisional suspension over the production at its Ulsan No.1 plant in South Korea because of the lack of chip in the middle of April 5 and April 13.
The affected Ulsan factory manufactures 311,000 autos annually that includes Kona Electric and Ioniq 5.
No decision was made on the decided provisional suspension of the facility, Hyundai had stated in a statement to the media.
The Korea Economic Daily addressed that the production at Hyundai’s Ulsan No.1 plant was being suspended because of the supply issues in concern with chips as well as power electric modules.
Underscoring the severity of the chip shortage problems, Hyundai, until recently one of the automakers that were least impacted because of the well-organized stockpiling, has become the recent automaker to seize the production because of the chip shortage.
Hyundai has been able to dodge a hit from the shortage so far widely since it had maintained a stockpile of chips unlike its global peers, the media had reported the previous month.
Honda Motor Co Ltd and General Motors Co both, the previous week had addressed that they would be consistent in their production suspension at plants in North America for the upcoming weeks, quoting the chip shortage as one of several reasons.
A convergence of factors comprising the closing of the factories, growing demand for laptops and tablets, and penalties against Chinese tech companies resulted in a global shortage of chips to shake the electronics sector in the month of December.
Originally concentrated in the auto industry, the shortage had spread to impact a range of consumer electronics, that even included smartphones.