Hyundai Motor to suspend some SUV output in South Korea as virus disrupts supplies

SEOUL (Reuters) – Hyundai Motor (KS:) said on Friday it planned to skip South Korean production of its Palisade sport utility vehicle this weekend to cope with a supply disruption caused by a virus outbreak, its spokesperson said on Friday.

Its crosstown rival Ssangyong Motor (KS:) also said it will idle its plant in the South Korean city of Pyeongtaek from Feb. 4 to Feb. 12, as China’s factory suspension had disrupted parts supplies.

The suspension illustrates that China’s extended factory closures ripple through supply chains across China and beyond.

A coronavirus outbreak that began in Wuhan, the capital of China’s central province of Hubei, has spread to more than 9,320 people globally, killing over 200 people.

Many firms scale back operations or close for long periods around the holidays, which began on Jan. 24 this year. This year, China’s government extended the Lunar New Year holidays to limit the spread of the virus.

Hyundai Motor is finding alternative suppliers in South Korea and other parts of China, after a supplier extended a factory closure to Feb. 9 in the wake of the closure, a union spokesperson said.

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