This photo, provided by Hyundai Motor Co. on shows a teaser of the carmaker's IONIQ 5, its first all-electric model. (Hyundai Motor Group)
Hyundai Motor Co. said Tuesday it will suspend production at a domestic plant that produces the Ioniq 5 all-electric model due to a chip shortage.
Hyundai plans to halt the operation of the No. 1 plant in Ulsan, 414 kilometers southeast of Seoul, which also produces the Kona subcompact SUV, due to lack of parts from April 7-14, a company spokesman said over the phone.
The decision comes amid a lack of semiconductor parts used in the Kona's front vehicle camera system and a problem in Hyundai Mobis Co.'s production line, which rolls out the traction motor for the Ioniq 5.
The plant's suspension for a week would result in 6,000 units of the Kona and 6,500 units of the Ioniq 5 in production losses, industry sources estimated.
The planned suspension of the No. 1 Ulsan plant would have a negative impact on sales of the Ioniq 5, given the 3,000 preorders for the Ioniq 5 in Europe last month and nearly 24,000 preorders on Feb. 25, the first day of its domestic launch, they said.
The maker of the Sonata sedan and the Palisade SUV also plans to readjust overtime work on weekends next month depending on chip supplies.
On Feb. 23, Hyundai unveiled the Ioniq 5, the first model embedded with Hyundai Motor Group's own EV-only electric-global modular platform (E-GMP), as it strives to morph into a future mobility solutions provider.
Hyundai said it will launch the Ioniq 5 in Europe in March, in the domestic market in the second quarter and in the United States and other markets later this year. (Yonhap)