May 16, 2021

Indian & World Live Breaking News Coverage And Updates

Indian & World Live Breaking News Coverage And Updates

Hyundai mulls suspension of production at key plant on chip shortage

Share This :

Motor said on Monday it is considering suspending production at a domestic plant next month due to a global semiconductor chip shortage.

Motor mulls halting the operation of the No 1 plant in Ulsan, 414 kms southeast of Seoul, which produces the Kona subcompact SUV and the IONIQ 5 all-electric model due to parts shortage, a company official said over the phone.

The possible suspension comes amid a lack of semiconductor parts used in the Kona’s front vehicle camera system and a problem in Mobis’s production line which rolls out the traction motor for the IONIQ 5, he said.

“Hyundai Mobis is having a difficulty caused by stabilization issues at the very beginning of mass production for the component,” a Hyundai Mobis spokesman said.

Hyundai Mobis is the main supplier of auto components for Hyundai Motor and Kia. They are all affiliates of Hyundai Motor Group.

Hyundai Motor said it has not decided on how long it will suspend the No 1 Ulsan plant, reports Yonhap news agency.

A week of the plant’s suspension would result in 6,000 units of the Kona and 6,500 units of the IONIQ 5 in production losses, according to industry people.

They said any suspension in the mainstay plant would have a negative impact on sales of the IONIQ 5 given 3,000 preorders for the IONIQ 5 in Europe last month and nearly 24,000 preorders on Feb. 25, the first day of domestic launch.

On Feb. 23, Hyundai Motor unveiled the IONIQ 5, the first model embedded with Hyundai Motor Group’s own EV-only electric-global modular platform (E-GMP), as it strives to morph into a future mobility solutions provider.

Hyundai said it will launch the IONIQ 5 in Europe in March, in the domestic market in the second quarter and in the United States and other markets later this year.

But Hyundai may have to temporarily shutter or cut production at some of its plants in line with global peers, such as General Motors Co. and Toyota Motors Corp.

Hyundai already reduced overtime work on weekends in the No. 3 Ulsan plant which produces the Avante compact due to lack of electric control units (ECUs).

The carmaker is expected to cancel all overtime work in the No 3 Ulsan plant in April due to parts problems.



Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Share This :