Seoul, May 24
Kia Corp, South Korea's No 2 carmaker, plans to suspend its factory in the United States for two days later this week due to a semiconductor shortage, company officials said on Monday.
The Georgia plant, which produces the Telluride, Sorento SUV and K5 sedan, rolled out 70,600 units in the first three months of this year, reports Yonhap news agency.
Kia halted production of its domestic factory in Gwangmyeong, west of Seoul, for two days last week due to the same problem, joining other automakers that were forced to cut back on production earlier this year.
In a conference call on the first-quarter earnings results last month, Kia executives said an extended chip shortage will have an impact on the carmaker's second-quarter bottom line.
Chances are high that the carmakers will continue to suspend their plants in the current quarter, as it takes time for their overseas chip suppliers to resume production following natural disasters and fires.
Disclaimer: This story was supplied by an external content provider; we do not endorse or accept responsibility for its accuracy, completeness, or any outcomes from relying on it. It is for informational purposes only and does not constitute legal, financial, medical, or other professional advice. Laws and regulations vary and may change; readers should verify accuracy and compliance with local requirements and consult a qualified professional for tailored guidance.