Hyundai Suspends Production Again over Chip Shortage

15 June, 2021
Hyundai Suspends Production Again over Chip Shortage
Hyundai plants in the home and abroad are suspending production due to an ongoing shortage of automotive computer chips. 

Hyundai said Monday that it is halting the assembly line for passenger cars at its Alabama plant in the U.S. until this coming Friday, though the engine production line for affiliate Kia is operating as usual.

Kia's Georgia plant may also reduce its three-shift working arrangements to two shifts for the same period. Hyundai and Kia are suffering the setback even while their Tucson and Sorento SUVs are enjoying growing popularity in America.

In the home, Hyundai's plant in Asan, South Chungcheong Province will be closed for just one day on Wednesday, that will halt production around 1,100 Sonata and Grandeur sedans.

This can be a fourth production suspension at the Asan plant this year. It already closed for a complete of seven days on three occasions in April and May. It really is expected to close for another six weeks in the next half of this year to set up new production lines for the electric Ioniq 6.

Industry insiders expect chip supply to boost a little in July. However the prevailing view is that it will require more time before situation is back again to normal.

"It requires time before products to enter the market even though global chip makers are increasing production," an industry insider said. "Some automakers must suspend production in the second half too as chip makers are inundated with orders right now."
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