South Korean woman tests positive for coronavirus after Thailand visit

Elias Hubbard
February 7, 2020

These include Tesla, Ford, PSA, Nissan and Honda, among others.

"We are in an emergency", a Kyungshin official told Reuters.

Hyundai Motor 005380.KS has suspended most production in South Korea as of Friday because the coronavirus outbreak in China has disrupted the supply of parts, becoming the first major vehicle maker outside of China to do so.

The automaker and its affiliate Kia Motors do not keep a large inventory of the parts, a majority of which are manufactured in China, said Lee Hang-koo, senior researcher at Korea Institute for Industrial Economics & Trade. It turns out that some of these models could go into production later than initially expected as the manufacturer has announced it will temporarily halt production at its South Korean plants due to a shortage of wiring harnesses.

"South Korean parts makers followed and built their own facilities [in China] along with Hyundai", added Lee.

Due to the production disruption, lines at parts suppliers in South Korea including Hyundai Mobis 012330.KS and Kumho Tire 073240.KS have also stopped, with concerns that the disruption will adversely affect smaller second- and third-tier subcontractors if the disruption is prolonged, the government said.

This disruption to supply and production comes at a bad time for Hyundai, as it breaks momentum for the Korean carmaker, which recently turned in its best quarterly profit in over two years.

Other reports by Click Lancashire

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