Korean auto, auto parts makers will have to lay down tools next month as well

2020.05.28 13:49:21 | 2020.05.28 15:44:54

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Finished car makers and auto parts suppliers based in South Korea will have to temporarily halt production at home next month as well amid no signs of recovery in overseas demand.

They had idled for extensive periods in May to deal with the falling sales at home and abroad driven by COVID-19 outbreaks.

According to industry sources on Wednesday, Hyundai Motor has decided to plug off its third Ulsan plant in Ulsan, North Gyeongsang Province, responsible for overseas-destined models like Venue, Avante and Ioniq, between June 11 and 12.

The second line of the Ulsan No. 4 plant that produces popular Porter truck will be closed down on June 1-5, while the shutdown schedule for the Ulsan No. 1 plant for Kona compact SUV has not been confirmed yet. Schedule for its Jeonju plant for bus and truck models will be out by the end of the month.

Kia Motors will close the Sohari No. 1 plant on June 1-2 and 8-9 and the Sohari No. 2 plant on June 1-3 and 8-10 due to falling orders from overseas.

Kia Motors Sohari plantÀ̹ÌÁö È®´ë

Kia Motors Sohari plant

SsangYong Motor is considering shutter nearly half of June as it had done in May. GM Korea and Renault Samsung Motor are no different. Renault Samsung Motor already stopped production from Thursday and production schedule for next month will soon be confirmed, said a company official.

Auto parts suppliers would have to follow suit.

The country¡¯s No. 1 automotive brake friction material supplier Sangsin Brake will be idled for nine working days next month. Tire makers Hankook Tire, Kumho Tire and Nexen Tire also are mulling closing their manufacturing lines.

Meanwhile, Hyundai Motor factory in Chennai, India resumed operation in mid-May but three laborers tested positive for COVID-19 on May 24. Kia Motors¡¯ factory in Mexico reopened on May 26, a week later than planned under the guidance of the local government.

Hyundai Motor shares on Thursday closed 0.92 percent lower at 97,200 won ($78.41) in Seoul, while Kia Motors finished the day 0.47 percent higher at 32,100 won.

By Lee Jong-hyuk, Park Yun-gu and Lee Ha-yeon

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