Hyundai Motor halts production of some SUVs in South Korea as virus disrupts supply

SEOUL (Reuters) – Hyundai Motor <005380.KS> announced Friday that it would suspend South Korean production of its Palisade SUV this weekend to deal with a supply disruption caused by a virus outbreak, a company spokesman said Friday.

Its city rival Ssangyong Motor <003620.KS> also announced that it would shut down its plant in the South Korean city of Pyeongtaek from February 4 to 12 due to disruptions in the supply of parts due to plant closures in China.

The suspension illustrates that ongoing factory closures in China are impacting supply chains across China and beyond.

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

Many companies are reducing their operations or closing for extended periods around the holidays, which began on January 24 this year. This year, the Chinese government extended the Chinese New Year holidays to contain the spread of the virus.

Hyundai Motor is currently looking for alternative suppliers in South Korea and other parts of China after one supplier extended a plant closure until February 9 as part of the shutdown, a union spokesman said.

(Reporting by Hyunjoo Jin and Joyce Lee; Editing by David Evans)