The South Korean multinational automotive manufacturer Hyundai Motor said that it has stopped the production of IONIQ 5 in a domestic plant due to chip shortage.
Hyundai Motor said Wednesday that it has suspended its No. 1 plant in Ulsan for a week until April 14, due to the lack of electric control units.
The weeklong suspension comes amid lack of semiconductor parts used in the Kona’s front vehicle camera system and a problem in Hyundai Mobis Co.’s production line, which rolls out the traction motor for the IONIQ 5.
The corresponding plant is where the automaker manufactures Ioniq 5, its new signature all- electric vehicle built on the company’s exclusive electric-global modular platform, or E-GMP.
Hyundai operates the world’s largest integrated automobile manufacturing facility in Ulsan, South Korea which has an annual production capacity of 1.6 million units.
The company employs about 75,000 people worldwide. Hyundai vehicles are sold in 193 countries through 5,000 dealerships and showrooms.
Hyundai was planning to launch the IONIQ 5 in Europe last month, but the parts problems delayed the launch. It plans to launch the model in the domestic market in the second quarter and in the United States and other markets later this year.
Roh Geun-chang, One of the researcher at Hyundai Motor Securities, said:
“It will be as early as the end of the second quarter for the current shortage problem to die down.”
Hyundai Motor’s sister brand Kia Corp. also halted its weekend overtime work at the Hwaseong plant, citing the lack of hybrid power control units.
The decision will affect the manufacturing volumes of the Sorento SUV, Niro EV, and the all-new K8 sedan next month.
The director of the Korea Semiconductor Industry Association, Ahn Ki-hyun, said:
“We should note that the US is moving towards building semiconductor production facilities on its own soil.”
