Even Grandeur…Hyundai Motors, Asan plant closed

Ioniq 5 and Kona production followed by Ulsan 1 plant

Grandeur Sonata mass production Asan plant stopped

Some of the Genesis models are also in the supply and demand of parts

Hyundai Motor Company Grandeur./Photo provided by Hyundai Motor Company

Due to the global automotive semiconductor supply shortage, Hyundai Motor Company is considering closing the Asan plant following the Ulsan plant 1. At the Asan plant Hyundai Motor (005380)The Grandeur, the flagship sedan of the company, is being produced.

According to industry sources on the 5th, Hyundai Motor Company’s Asan plant working staff suggested a plan to close the labor union for 3 days on the 7th to 9th and half the operation on the 12th to 15th. As the union protested, the period of suspension and the amount of disruption have not been determined. The labor and management are expected to decide the period of business closure through a meeting at lunch on the 6th.

Currently, the most tightly supplied component among automotive semiconductors is the’Power Control Unit (PCU)’ that controls the entire electronic system.

If the Asan plant is stopped due to a shortage of parts, the plans to deliver the Granger and Sonata produced there will be delayed. As currently under discussion, production disruption is inevitable if only half of the plant is closed or the plant is operated. Granger is the No. 1 in domestic sedan sales, with 9,217 units sold in the past month alone.

Earlier, Hyundai Motor Company decided to temporarily suspend the operation of the Ulsan Plant 1 from the 7th to the 14th due to a disruption in the supply and demand of semiconductors. At Ulsan Plant 1, Ioniq 5, an electric car exclusively for Hyundai Motors, and Kona, a compact SUV (multipurpose sports vehicle), are being produced.

As automotive semiconductor supply and demand is expected to normalize in the second half of the year, there are concerns in the industry that the mass production of Hyundai Motor Group’s flagship brand Genesis may also be disrupted. It is known that some of the Genesis car models are experiencing a disruption in mass production due to the semiconductor supply and demand problem.

/ Reporter Byun Soo-yeon [email protected]

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