AutoBeta(AutoBeta.net)02/20 Report--

Although the number of new cases of the COVID-19 epidemic is decreasing, the impact of the epidemic on the upper, middle and lower reaches of the automobile industry continues. According to media reports, due to the impact of the epidemic, a number of domestic parts manufacturers stopped production, resulting in a shortage of spare parts. Hyundai Motor Group's first factory in Ulsan, South Korea, announced on the 17th that it would officially resume work one day later, and the second plant in Ulsan was scheduled to stop work for one day on the 21st, and the Yashan plant would also face a shutdown again. In addition, the shutdown of Kia's Guangming plant in Gyeonggi Province and the third Gwangju plant in South Korea will also be extended to the 21st of this month.

Earlier, Hyundai announced that it would suspend car production in South Korea because of a shortage of parts from China, making it the first carmaker to announce a halt outside the Chinese market.

It is understood that Hyundai has seven state-owned factories in South Korea, five of which are located in Ulsan. Hyundai's five factories in Ulsan have an annual output of 1.4 million vehicles, making it the largest vehicle manufacturing plant in the world. On Feb. 10, Chinese parts manufacturers have resumed production one after another, and Hyundai said it will also resume production at its factory in South Korea on the 17th.

But just two days later, Hyundai's local plant faced another shutdown after a worker at a supply chain manufacturer was diagnosed with a new type of pneumonia infection that led to a shutdown, so parts at Hyundai's South Korean plant could not be supplied in time. A Hyundai spokesman said that although most of the harness parts from China have arrived at factories in South Korea, they have not been adequately supplied. As a result, the operating rate of the factory fell below 50%, and the company again decided to flexibly schedule the opening time of each factory.

It is understood that Hyundai Korean factory shutdown is due to insufficient supply of automotive wire harness, wire harness is used to connect electronic equipment, although inconspicuous, but plays an important role in automobile production. According to the Korea Association of Automobile Manufacturers, if the supply of spare parts continues to be in short supply, only Hyundai and Kia will reduce the supply of 50, 000 vehicles in their hometown. the loss of sales is expected to exceed 1 trillion won (about 5.88 billion yuan).

Production at overseas factories by General Motors, Nissan and Fiat Chrysler has also been affected by a shortage of parts in China. At present, domestic auto parts manufacturers, auto manufacturers, and car dealers have gradually resumed production and operation, but enterprises in Hubei and Wuhan are expected to resume production next week and make corresponding adjustments according to the development of the epidemic. However, although the automobile industry has started to resume work one after another, it will continue to have an impact on car companies at home and abroad.

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