South Korean automakers, including Hyundai and Kia, are on high alert as Chinese parts supply disruptions have become a reality in the wake of the new coronavirus.
If the Chinese government continues to suspend operations of its auto parts plant to prevent the spread of new coronavirus, it will be inevitable for South Korean factories that produce some models to be closed.
According to industry sources on Feb. 3, Hyundai and Kia are considering suspending some production lines depending on supply and demand of integrated wiring devices called "Wiring Harness" in vehicles that are being supplied from China.
Hyundai and Kia have been receiving "wiring harnesses" from local Chinese factories of their Korean partners such as Yura Corporation and THN, but they are having difficulty receiving parts due to the recent production disruptions caused by the new coronavirus outbreak.
The Chinese plants, which are operated by Eura Corporation and others, have been closed until Feb. 9, following the Chinese government's recommendation.
Hyundai has already suspended the Ulsan plant and Jeonju plant in North Jeolla Province once, while Kia Motors has begun controlling the production volume of some models at its Hwaseong and Gwangju plants in Gyeonggi Province.
Regarding this, Ha Eon-tae, CEO in charge domestic production who oversees the operations of Hyundai's plants in Ulsan, Jeonju, and Asan, South Chungcheong Province, also said in an internal bulletin that it is inevitable for the company to stop production and close operations by plant and line.
Meanwhile, Ssangyong Motor has also decided to suspend its production lines at its Pyeongtaek plant in Gyeonggi Province for seven days from Feb. 4 to 12 due to Chinese companies' failure to produce parts. The scheduled date for the production resumption may be changed depending on the situation in China, a Ssangyong official said.