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Korean automakers halt output as coronavirus disrupts parts supply

By Kim Hye-ran, UPI News Korea
The coronavirus outbreak has prompted South Korean automakers to stop production lines as they struggle to procure parts manufactured in China. Photo courtesy of Renault Samsung Motors
The coronavirus outbreak has prompted South Korean automakers to stop production lines as they struggle to procure parts manufactured in China. Photo courtesy of Renault Samsung Motors

SEOUL, Feb. 6 (UPI) -- The coronavirus outbreak has prompted three automakers in South Korea to stop production as they struggle to procure parts manufactured in China.

Renault Samsung Motors said Wednesday it will shut down its factory in South Korea a few days next week, joining Hyundai Motor and SsangYong Motor in disrupting production.

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All three automakers cited a shortage of a crucial component called wiring harness.

Renault Samsung said its stocks of the part are expected to be depleted Tuesday, and new supplies are likely to arrive late next week.

Wiring harness is an indispensable automotive part laid on the floor of the vehicles. It's an electrical assembly of various components, transmitting power and information.

Renault Samsung depends heavily on the Chinese supply of wiring harness.

Its two domestic rivals are facing the same problem.

Hyundai Motor stopped two production lines in Ulsan on Tuesday and plans to follow suit with all other lines in the country.

It marks the first time Korea's largest automaker has suspended its production lines due to a part shortage since 1997's Asian financial crisis.

On the same day, SsangYong Motor halted the operation of its plant, and the production break is expected to continue through at least next week.

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The disruption could continue if the Chinese sourcing factories remain shut down for longer than expected.

The novel coronavirus outbreak started in December in Wuhan, China, where entire cities are now under quarantine, and has since spread to other countries. Some 565 people had died by Thursday.

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