South Korea’s Hyundai Motor to suspend Asan plant output over chip shortage
Fri Apr 09 2021
Lucy Harlow (3669 articles)

South Korea’s Hyundai Motor to suspend Asan plant output over chip shortage

South Korea’s Hyundai Motor Co said on Friday it has decided to suspend production for two days starting on Monday at its Asan plant because of a chip shortage.

It said the suspension was because of the “supply conditions” for semiconductor parts for powertrain control units.

“We are closely monitoring the situation to take prompt and necessary measures to optimize production in line with the supply conditions,” Hyundai said in a statement.

The Asan factory turns out 300,000 vehicles each year, including the Sonata and Grandeur sedans.

Hyundai last week announced it would suspend output at Ulsan, its main South Korean factory, from April 7 to April 14 because of chip and component supply issues.

Underscoring the severity of the global chip shortage crisis, Hyundai has become the latest automaker to halt manufacturing because of the chip shortage.

Hyundai had been able to avoid a hit from the shortage so far largely because it maintained a stockpile of chips unlike its global peers, Reuters reported in February.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe