Hyundai to cease production in South Korea due to Coronavirus
The automobile giant says that the current virus outbreak is making it difficult for them to get hold of parts from China. As a result, Hyundai Motor Company will suspend production in South Korea which makes it the first major carmaker to do so outside of China.
The death toll of Coronavirus has risen up to 400 and gone beyond the areas in mainland China.
As reported by Al Jazeera, in China itself, global automakers including Hyundai, Tesla, Ford, PSA Peugeot Citroen, Nissan and Honda Motor Company have already extended factory closures in line with government guidelines.
Lee Hang-koo, senior researcher at the Korea Institute for Industrial Economics and Trade, said, “Hyundai and Kia may be more affected as they tend to import more parts from China than other global automakers.”
Over the past few decades, the South Korean automobile manufacturer has built huge production capacity in China.
According to trade data, South Korea imported $1.56bn worth of auto parts from China in 2019, up from $1.47bn in 2018.
The production in South Korean factories will be fully halted in this month.
(Reference: Al Jazeera)