The Hyundai Motor Co. has become the first major automaker to suspend production outside of China due to the coronavirus outbreak. The company announced that it would suspend production across all seven of its factories in South Korea as a result of the coronavirus outbreak disrupting the supply of parts. With South Korea being Hyundai’s largest manufacturing base and accounting for about 40% of its global output, the decision is likely to cause further delays and disruptions to the supply of its vehicles.
The production suspension follows a shortage of parts, which the company sources mainly from China, but the two affected suppliers, Kyungshin and Yura Corp, have said that they are trying to boost production at their other factories in South Korea and Southeast Asia to compensate for the disrupted supply from China. Both suppliers also plan to resume production at the Chinese facilities on February 9th. However, the length of time in which production will be suspended at Hyundai’s South Korean factories remains unknown.
While Hyundai are the first car manufacturer to suspend production outside of China, many other global automakers including Tesla, Ford, PSA Group, Nissan and Honda, have suspended production at their Chinese facilities inline with Government guidelines.