South Korea’s Hyundai Motor Co plans to temporarily suspend production at its Ulsan No. 1 Plant due to a chip shortage, the Korea Economic Daily reported yesterday.
The affected Ulsan factory, which is to close from Monday next week to April 13, typically produces 311,000 vehicles per year, including the Kona Electric and the Ioniq 5.
“No decision has been made on the reported temporary suspension of the facility,” Hyundai said in a statement.
Photo: Jung Yeon-je, AFP
The Korea Economic Daily reported that production at the Ulsan No. 1 Plant was being suspended due to shortages of chips and power electronic modules.
Hyundai, until recently one of the least-affected automakers thanks to chip stockpiling, has become the latest automaker to halt manufacturing due to the shortage, which underscores the severity of the crisis.
Last week, Honda Motor Co Ltd and General Motors Co each announced that they would continue to suspend production at plants in North America over the coming weeks, citing the chip shortage among other reasons.
A confluence of factors — including plant shutdowns, demand for laptops and tablets, and sanctions against Chinese tech companies — has resulted in a global shortage of chips that has rattled the electronics sector since December last year.
Originally concentrated in the auto industry, the shortage has widened to affect a range of consumer electronics, including smartphones.
Separately yesterday, Italian metalworkers union UILM said that Stellantis NV would halt production at its plant in Melfi, Italy, from Friday to April 12 due to low demand amid the COVID-19 pandemic.
Production at the plant — where the world’s fourth-largest automaker makes the Jeep Renegade and Compass models, as well as the Fiat 500X compact sports utility vehicle — has been repeatedly disrupted due to weak demand and chip shortages.
Last week, Italian metalworker union FIM-CISL said that the firm was considering permanently closing one of its two production lines at the Melfi plant to address excess capacity in Italy.
A Stellantis spokesman confirmed that the plant would be closed from Friday to April 12.
All of Melfi’s more than 7,000 workers are to be placed on a furlough scheme for the closure.
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