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Hyundai to Suspend US Plant for Three Weeks on-chip Shortage, Maintenance

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Hyundai Motor, South Korea’s biggest carmaker by sales, said on Monday it would suspend its US plant for three weeks due to lack of semiconductors and routine maintenance.

A company spokesman said that Hyundai Motor will halt the Alabama plant for one week from June 14 on a chip shortage and two weeks from June 16 to July 11 for the plant’s maintenance work.

In recent weeks, chip parts shortages have continued to affect the production of carmakers and other manufacturers in the United States and other markets, reports Yonhap news agency.

Last month, Hyundai halted its Indian plant for five days starting May 25, as two workers in the Tamil Nadu plant were infected with COVID-19, and several workers staged a sit-in at the plant on May 24 amid rising virus fears among workers.

On the domestic front, the company has temporarily halted some of its domestic plants on a chip shortage.

Hyundai has seven domestic plants – five in Ulsan, one in Asan, and one in Jeonju – and 10 overseas plants – four in China and one each in the United States, the Czech Republic, Turkey, and Russia, India, and Brazil. Their combined capacity reaches 5.5 million vehicles.

Hyundai’s affiliate Kia Corp. also temporarily halted its U.S. plant and domestic plant in Gwangmyeong, just southwest of Seoul, last month due to the same problems.

Kia said it is considering changing the current three-shift system in the Georgia plant to a two-shift system as early as this week.

The maker of the K5 sedan and the Sorento SUV has eight domestic plants in Korea and seven overseas ones — three in China and one each in the United States, Slovakia, Mexico and India. Their overall capacity is 3.84 million units.

Hyundai and Kia together form the world’s fifth-biggest carmaker by sales.


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