Posted on 02/04/2020 11:14:03 AM PST by RightGeek
Hyundai announced Tuesday that it is suspending production in its South Korea manufacturing plants due to supply chain problems caused by the coronavirus outbreak in China.
The world's fifth-largest automaker said in a statement that the suspension is a result of "disruptions in the supply of parts resulting from the coronavirus outbreak in China," The New York Times reports.
Hyundai has plants worldwide, but has been hampered by the fact that it gets many of its parts from China. Several plants in China that make the parts that the automaker needs have shut down because of the continued spread of the virus, which has killed more than 400 people, according to the Times.
The auto company told the Times via email that it was "reviewing various measures to minimize the disruption of its operations, including seeking alternative suppliers in other regions."
(Excerpt) Read more at thehill.com ...
It lost over 600 points on Friday. Investor nerves have settled (rightly or not) from the freak out Friday and the market is stabilizing.
Hyundai makes cars in Montgomery, Alabama.
They need to add another shift to the plant, or even go to three shifts here. The multitude of suppliers along the I-85 corridor, too. also, Hyundai makes KIAs at their plant in West Point, Georgia. Expand, baby, expand!
Iowa caucus.
I would agree with that, but I do think there is plenty of room for seeing that the global economy is going to suffer from this situation.
The supply chain has finally found the weakest link.
The percentage of merchandise made in China in our stores is fairly high.
Infectious disease ping.
Lots of parts containing rare earths and are critical for modern cars are only made in China at the present time - China refuses to sell rare earths to anyone unless the product/part using them is made there too.
LOL...good one. Shouldn't that be "Smaht-Pahking" though?
I understood maybe one word out of ten in that commercial. There was a cool picture of a car parking itself. Was that the focus?
As this epidemic disrupts supply chains from Asia the outcome will be a reallocation of supply chains, many to within North America.
Companies that practice just-in-time inventory will be hardest hit, even before women and children.
The only silver lining in this shitty cloud is that American manufacturing will be coming home faster than ever.
Pray for the sick.
I think the news is that while the Virus will have some impact, it won’t be catastrophic as some feared. It will be a bit bumpy, though.
“ The long term effect of this will be to complete what Trump started, the decoupling of the US economy (and others) from China. The flight of manufacturing and investment from China to India, Indochina and USMCA will accelerate tremendously. The Chinese will be on their knees begging Trump “no mas, help” during Phase II negotiations.”
this.
How many parts used in American assembly plants are sourced from Chinese suppliers? That’s going to be the big problem.
Can American parts suppliers ramp up enough to overcome that? Do we even have enough automotive parts suppliers left in the U.S.?
EVERYTHING will be disrupted.
There will be inflation on many, many products.
Don’t know how long it will last, or how severe it will be.
A lot, no because they can’t get the rare earths needed for the electronics, unknown but I don’t think they can scale up fast enough - too much infrastructure they rely on is no longer available Stateside.
We can’t even make automobile batteries in the US as the last lead smelter went out of biz under Obama.
If nothing else, those that don’t flee China entirely will be *very* interested in diversifying the supply chain with alternate suppliers in other countries.
“the IDIOTS in business and government will realize that no supply source is 100% certain”
The companies I worked for were all acutely aware of their supply chains and potential for disruption. We had all sorts of risk analyses and business continuity done and contingency plans in place. There were hiccups (like the Thailand typhoon taking out semiconductor plants) but we recovered quickly and weren’t late delivering product to customers.
I doubt there are any companies who source parts from offshore who do not do similar planning.
This time may be very different, though. This is going to be far bigger than a typhoon hitting a region.
Here comes all the idiots saying this will destroy OUR economy rather than realizing that this is an unfortunate chance for us to make the US the Empire it deserves to be ...
I remember that - it was in Missouri, as I recall, and had been in business over 100 years. Obama really dealt us a lot of bad blows.
Where do you think they get parts from?
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