Corona virus impacts industry, world's largest car factory closed - Vice Daily

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Corona virus impacts industry, world's largest car factory closed

The industry is also being affected by the corona virus infection.  The car factory with the highest production capacity in the world was temporarily closed on Friday.  Hyundai, a South Korean automobile company, has stopped ope…






The industry is also being affected by the corona virus infection.  The car factory with the highest production capacity in the world was temporarily closed on Friday.  Hyundai, a South Korean automobile company, has stopped operating its huge Ulasan plant.  In China, due to the Corona virus infection affecting industrial production, there has been a shortage of auto parts.  This plant has a capacity to produce 1.4 million vehicles annually.  This plant is located on the coast.  This allows it to easily import components and export finished vehicles.

 China has ordered closure of factories to prevent further spread of corona virus infection.  Due to this, it is becoming difficult for the industries dependent on components manufactured in China to continue operating.  Hyundai has a shortage of goods that connect the electronic equipment of the vehicle plant.  Due to this, other companies including Hyundai in South Korea have stopped operations at present.  Only in South Korea, about 25 thousand workers have been forcibly sent for this reason.

 Park, who works at the Ulsan plant, said, "It is a matter of shame that I cannot come to work and will have to accept a cut in salary."  This is very uncomfortable. "Analysts believe this is the first example of the closure of factories outside China due to coronavirus.

 According to analysts, this is going to have a serious impact on Hyundai.  Keeping the plant closed for five days will cause an estimated loss of at least 600 billion won.  Hyundai's subsidiary Kia Motors has decided to close three plants on Monday.  Apart from this, Renault's South Korean subsidiary Busan plant is going to be closed next week.  Fiat Cruiser has also said that it may be forced to stop operating its European factory for the time being.

 Chiong In-kyo, an economics professor at Inha University in South Korea, said, "The biggest problem is how we will overcome this transition in China, we don't know."  South Korean companies are largely dependent on China for components.  The problem is that if there is a shortage of any part, you cannot continue to operate. "He warned," This is just the beginning.  This crisis will spread to other areas besides the automobile sector. "

 Moody's Analytics Chief Economist Mark Jandi said, "China has become an integral part of the global manufacturing supply chain and has a share of around 20 percent in global manufacturing.  The closure of the factory in China will first affect its neighboring countries Taiwan and Vietnam, and then Malaysia and South Korea. "It may take some time to see its impact in the US and other parts of the world due to the length of the supply chain."  .

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