Hyundai to Suspend Production in South Korea Amid Coronavirus Outbreak

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXNPEC0Q0SR_M.jpg
© Reuters. © Reuters.

By Alex Ho

Investing.com – Hyundai Motor (KS:) said it will halt its production in South Korea as the coronavirus crisis has disrupted the company’s part supply.

Despite the news, the company’s shares traded 1.2% higher to 125,500 KRW by 11:20 PM ET (03:20 GMT).

“Hyundai and Kia may be more affected as they tend to import more parts from China than other global automakers,” said Lee Hang-koo, senior researcher at the Korea Institute for Industrial Economics & Trade, in a Reuters report.

Production in Hyundai’s seven factories in South Korea accounts for about 40% of the company’s global output, the article said.

Hyundai, along with other global automakers including Tesla and Honda, have already extended factory closures in China under government guidelines.

European carmakers such as Volkswagen, Audi and BMW remained little impacted by the virus outbreak so far, as they said their factories outside of China were not affected by supply bottlenecks so far.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.