Kia Motors announced on Sunday, July 25, that it had suspended the works in one of its plants in South Korea. Starting on Monday, the company’s Sohari plant will temporarily cease operations as the number of COVID-19 infected workers has grown.
Fear of COVID-19 outbreak
As per the Yonhap News Agency, dozens of factory workers at the Kia Motors Sohari plant were diagnosed with the coronavirus infection, and for fear of a possible outbreak in the workplace, the South Korean automaker decided to suspend the production in the factory.
It was added that Kia Motors could not determine yet when it will re-open the plant as there is a possibility of extending the suspension. Through its spokesman, the company stated that the decision would depend on the results of COVID-19 tests of the workers.
The affected factory is located in Gwangmyeong, and it is where Kia is manufacturing its Stinger sports car model. It is also producing the Carnival mini-van and its K9 flagship sedan. The plant has a capacity of assembling 320,000 units of vehicles.
Second plant closure in recent months
In any case, this is the second time that Kia Motors has shut down its Sohari plant. In May, its no. 2 factory in the area was closed not because of coronavirus but due to parts shortage that is affecting many car makers worldwide.
Korea Joongang Daily reported that the automaker suspended its no. 2 Sohari factory located in Gwangmyeong, Gyeonggi, as there are not enough airbag control units available. This is the vehicle component that detects accidents and activates safety equipment during the mishap.
This was the company’s very first shut down in South Korea since the chip shortage started. This plant is mainly producing the Kia Motors’ Stonic SUV.
Other South Korean carmakers have also halted their operations due to the same reason of the lack of semiconductor parts. Meanwhile, Kia Motors’ other local and overseas plants were not affected by the new shutdown announcement. Its factories in the United States, India, China, Mexico, and Slovakia are operating just fine at the moment and hopefully will not be ordered to close in the future because of chip shortage.


Coupang Reports Q4 Loss After Data Breach, Revenue Misses Estimates
Strait of Hormuz LNG Crisis Triggers Global Energy Market Shock
Australia Targets AI Platforms With Strict Age Verification Rules
Asian Markets Slide as Nvidia Earnings, U.S.-Iran Tensions and AI Valuations Weigh on Investor Sentiment
Samsung Electronics Stock Poised for $1 Trillion Valuation Amid AI and Memory Boom
U.S. Stock Futures Fall as Nvidia Drops Despite Strong Earnings; Netflix Jumps 9%
Nvidia to Launch New AI Inference Processor to Boost OpenAI Performance
Trump Warns Iran as Gulf Conflict Disrupts Oil Markets and Global Trade
FCC Approves Charter Communications’ $34.5 Billion Acquisition of Cox Communications
Samsung and SK Hynix Shares Hit Record Highs as Nvidia Earnings Boost AI Chip Demand
Anthropic Refuses Pentagon Request to Remove AI Safeguards Amid Defense Contract Dispute
Oil Prices Surge 13% as U.S.-Israel Strikes on Iran Spark Supply Fears
Paramount Skydance to Acquire Warner Bros Discovery in $110 Billion Media Mega-Deal
Stock Market Movers: Dell, Block, Duolingo, Zscaler, CoreWeave, Autodesk, Rocket, MARA
Germany and China Reaffirm Open Trade and Strategic Partnership in Landmark Beijing Visit
Middle East Airspace Shutdown Disrupts Global Flights After U.S.-Israel Strikes on Iran
Australian Job Advertisements Hit 16-Month High as Labour Market Stays Resilient 



