Hyundai shuts production line over virus outbreak
05 Feb 2020
South Korean auto major Hyundai Motor was forced to halt operations at one of its assembly lines on Tuesday because of non-availability of components following the coronavirus outbreak in China.
Hyundai Motor also warned of a wider suspension of production if the supply chain stops altogether.
The virus outbreak in China had disrupted procurement of wiring components, a Hyundai spokeswoman said.
"For now, the production line for the Genesis sedans at the Number 5 plant in Ulsan has been temporarily suspended," she said.
She could not say when production might resume, but said the company was discussing possible suspensions of operations at more plants with its labour union.
"The situation doesn't look good," she said.
Hyundai has seven domestic plants and several overseas, including some in China.
Tuesday's move comes after the carmaker cancelled overtime factory hours at the weekend to produce its flagship Palisade sport utility vehicle, although production of those resumed on Monday.
The virus first hit that the central Chinese city of Wuhan, a centre for the auto industry, cutting off parts supplies within and outside China.
Besides the auto industry the virus that has spread to more than 20 countries and resulted in 415 deaths in China alone, has prompted widespread business shutdowns and cancellation of flights by airlines around the world, disrupting business and travel.
From Macau and South Korea to Singapore, businesses are enforcing temporary closures as coronavirus cases escalate.
More businesses across Asia are suspending operations and an international aviation summit has been cancelled in an attempt to curb the spread of the new coronavirus from China.
Macau, the world's biggest gambling hub, said on Tuesday it had asked all casino operators to suspend operations for two weeks to help curb the spread of the new coronavirus.