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Hyundai and Kia Stop Production Due to Parts Shortage

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May 23rd, 2011 by Ross Edwards

Hyundai has announced that production on three Hyundai SUVs has been stopped due to a parts shortage and several other Kia and Hyundai models will also be stopped in the next week. The Hyundai parts shortage has nothing to do with damage due to the Japanese earthquake, instead, production of Hyundai and Kia models will stop because of something much more mundane, a labor dispute.

Like the NFL players and owners, the workers at South Korea’s Yoosung Enterprise are unable to agree on wage and working conditions. The workers at Yoosung Enterprise and the owners of the company have reached an impasse and the workers went on strike on May 18. Yoosung makes 70 percent of the piston rings used in Hyundai and Kia models, according to The Truth About Cars.

2011 Hyundai Tucson

Currently production has stopped on the Hyundai Tucson, (shown here) Santa Fe and Veracruz, and if the parts shortage is not fixed this week, most of Hyundai’s and Kia’s lineups will be affected.

The strike at Yoosung also affects Renault and GM Korea. Both companies depend on the company for engine internals and will be affected by the strike if it continues.

Just as the possibility of a production stoppage at Japanese carmakers that we wrote about recently would affect buyers, the work stoppage at Hyundai will most likely result in fewer vehicles to choose from, higher prices and a suspension of sales and incentives. Hyundai is not out of vehicles right now, so if you’re planning to shop in the next couple weeks you shouldn’t have to worry about the parts stoppage. If you’re planning to buy a Hyundai in the next few months, you might want to speed up your shopping timeline to take advantage of the current Hyundai incentives before they expire.


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