Hyundai Palisade, Genesis GV80 production halted due to withdrawal of supplier – resumes this week

While many companies are ramping up production after closures related to the coronavirus pandemic, some others are facing teething issues. Hyundai has had to suspend production of its Palisade and Genesis GV80 SUVs last week due to parts supply shortages, according to just-auto.

The issue stemmed from supplier Myungbo Industrial, which also provided seats and related components to the Santa Fe, Tucson and the hydrogen-powered Nexo. The vendor notified its clients last week that it could no longer continue its supplies and automotive business due to pandemic-related difficulties, Korean publication Pulse reported.

Negotiations since then have resulted in Myungbo agreeing to at least supply to cover Hyundai’s inventories, and production has temporarily normalised. This disruption is just the latest in a series of setbacks as the Korean carmaker attempts to bounce back from widespread shutdowns.

Just two weeks ago, the company had to halt two production lines at its Ulsan 2 plant and one line at Ulsan 4, after a worker at a parts supplier was believed to have died from the coronavirus. The day before, its subsidiary Kia stopped two plants because two of its workers tested positive for the disease.

In an unrelated issue, deliveries of diesel GV80s were suspended earlier this month due to excessive engine vibrations. Hyundai also recently paused production of the Sonata and Santa Fe to control inventory, countering slowing demand worldwide.

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