Hyundai Motor Group has stopped operations in its production plants in the United States. It was reported that the reason for the pause was the automotive chip shortage.
The unavoidable factory suspension
The South Korean automaker made the announcement of the temporary pause on Monday, June 14. It was added that its sister company, Kia, will not be affected by the suspension so its production in Georgia will not be interrupted.
"Hyundai Motor will suspend operations of the company's factory in the U.S. state of Alabama for five days from June 14,” the company said in a statement. “The decision will only affect Hyundai Motor's vehicle assembly lines."
As per The Korea Times, while the production in the Hyundai plant in Alabama is on pause, the company will use the time to carry out maintenance works in the facility. The full operation is expected to resume on June 21.
"Yes, we don't have plans to manufacture vehicles at the company's Alabama plant this year,” an official from the company said. “Hyundai Motor will offer support measures to employees who will be affected by the suspension, and we plan to normalize factory operations after the scheduled summer break."
In any case, it was revealed that the assembly of the Sonata and Elantra cars, as well as the Santa Fe SUV, will be affected by the temporary closure of the facility in Alabama. It was mentioned that Hyundai is also expanding the compound and will be spending over $400 million for a plant for the production of Santa Cruz models, a compact pickup truck.
Hyundai to use the break for maintenance
As said earlier, while Hyundai Motor’s facility in Alabama is on break, routine maintenance will be carried out so as not to waste time. Yonhap News Agency reported that the maintenance work will take place from June 16 to July 11.
Finally, Hyundai Motor has been suspending the operations in its production plants in recent months. Last month, it halted the works in its Indian factory in Tamil Nadu but this case is different because the works were suspended due to the workers’ fear of being infected with COVID-19 at the workplace. Then again, the chip shortage remained the biggest issue as to why carmakers are halting their assembly work worldwide.


U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
Baidu Approves $5 Billion Share Buyback and Plans First-Ever Dividend in 2026
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom
American Airlines CEO to Meet Pilots Union Amid Storm Response and Financial Concerns
Thailand Inflation Remains Negative for 10th Straight Month in January
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks
Prudential Financial Reports Higher Q4 Profit on Strong Underwriting and Investment Gains
Instagram Outage Disrupts Thousands of U.S. Users
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 



