Hyundai Motor mulls adjustment in Grandeur production due to chip woes

South Korea’s largest automaker Hyundai Motor Co. is moving towards a second plant suspension to adjust popular vehicle yields against global chip shortage.

According to industry sources on Monday, Hyundai Motor’s management is in talks with its union on halting production at the Asan third factory devoted to Grandeur and Sonata flagship sedans for three days on April 7-9 and running at halved capacity on April 12-15. Grandeur is Hyundai’s steady bestseller in Korea that sold 9,217 units last month alone.

The company is said to be running short on power control units that control the power-generation and traction motors in vehicles.

The third plant in Ulsan that produces Avante sedans will not work on Saturday.

Hyundai Motor declined to confirm suspension, although it admitted responses to stalled parts deliveries.

“Various measures are being reviewed to respond to a supply disruption of some vehicle parts, but nothing has been confirmed yet,” said a Hyundai Motor official.

Hyundai Motor earlier announced it was stopping electric vehicle factory in Ulsan a weeklong April 7-14 and adjust the rollout of its much-hyped all-electric Ioniq 5 due to the ongoing worldwide chip shortage.

Hyundai Motor shares fell 1.71 percent to close Tuesday at 230,000 won ($205.36) in Seoul.

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