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Korean carmakers increased production in March but no one’s buying.
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Production at most South Korean plants will be halted between April 30th and May 5th.
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Other plants around the globe will see its activities stop for a longer period.
If you’re in the market for a new Hyundai or Kia vehicle, odds are there will be many good deals to be made in the coming months. Only a few days ago, many reports were published pertaining to Hyundai and Kia’s over-optimistic projections for demand and how 34,000 vehicles have landed at US ports with nowhere to go. Overstock and plummeting demand have forced plant idling.
Last March, Hyundai projected that demand for their Tucson SUV and other models was to increase in the US. With that in mind, they booted output to as much as 98% of their production capacity and shipped 33,990 vehicles to the US. That was a mistake. With the country still on lockdown and very much still facing the coronavirus pandemic, consumers are not buying. In fact, even dealerships are delaying taking delivery of these vehicles.
The overstock, the pandemic, and dwindling demand has forced Hyundai and Kia to halt production at must South Korean plants from April 30th and May 5th. The Brazil plant will remain closed until the end of May. Kia will sporadically shut its operations next week and throughout May as well.
The overstock will be a huge mistake for Hyundai but may prove to be an opportunity for potential buyers.
