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Coronavirus claims world's biggest capacity car plant

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AFP Seoul
Last Updated : Feb 07 2020 | 11:18 AM IST

The most productive car factory in the world fell quiet on Friday as South Korea's Hyundai suspended operations at its giant Ulsan complex, hamstrung by a lack of parts with the coronavirus outbreak crippling China's industrial output.

The five-plant network can make 1.4 million vehicles annually, in a coastal location facilitating importing components and exporting cars globally.

But supply lines are crucial in an ever more interconnected worldwide economy and the coronavirus outbreak in China has seen Beijing order factories closed in several areas as it seeks to contain the epidemic.

As a result, Hyundai -- which with its affiliate Kia ranks as the world's fifth-largest auto manufacturer -- has run out of the wiring harnesses that connect vehicles' complex electronics.

It is having to suspend production at its factories across South Korea, putting 25,000 workers on forced leave and partial wages, healthy victims of the disease outbreak across the Yellow Sea.

"It's a shame that I can't come to work and have to accept a pay cut," said an Ulsan production line staffer surnamed Park. "It's a very uncomfortable feeling."
"South Korean companies rely heavily on China for parts and components. The problem is even if just one part is missing, you can't do anything."
"There is not a single category that is not manufactured in China."
Automakers and suppliers were "evaluating and planning how to navigate the disruptions", she said. "But there is no capacity the size of China sitting idle waiting to fill in the gaps and it's difficult to move quickly in this environment when everyone is impacted."

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First Published: Feb 07 2020 | 11:18 AM IST

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