Coronavirus Disrupts Chinese Parts Supplies Forcing Hyundai To Idle South Korean Output 

• Hyundai joins Tesla , Ford , PSA Peugeot Citroen , Nissan and Honda Motor who’ve extended factory closures.
• A huge portion of Hyundai’s parts are imported from China.
• Most of Hyundai’s seven factories in South Korea will be put on hold.
• This may affect Hyundai Palisade and Genesis GV80 output.

This situation gives you an idea of how a supply chain works. A number Chinese parts suppliers for Hyundai have been forced to slow or stop their activities because of the coronavirus outbreak directly impacting vehicle production.

The part in question is a wiring harnesses which is mainly sourced in China. It’s unclear if this is the only part that is forcing extended plant closures but 40% of Hyundai’s global output comes from South Korea. To say this is a big problem for Hyundai would be understating the obvious.

The timing could not be worse for Hyundai as the all-new, recently introduced Genesis GV80 could be affected by the closures. Launch was planned for this summer however as most of the South Korean factories are to be fully idled from February 7^th (some are expected to be up and running on the 11^th or 12^th) could delay market introduction.

Source: The Telegram