Kia Compact Vehicles Contractor Suspends Production
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A South Korean contract manufacturer for Kia Motors’ compact vehicles has suspended production, a company official said on Monday, citing a drop in overseas demand as the coronavirus outbreak has spread across Europe.
Donghee Auto, which produces Kia’s Picanto and Ray models, has suspended production at its plant in Seosan, South Korea, until April 13, the official said.
Of the 195,516 Picanto vehicles produced in South Korea last year 73% were exported, mostly to Europe, Korea Automobile Manufacturers Association data shows.
Hyundai Wia, which produces engines for the Picanto and Ray, also said in a regulatory filing on Monday that it will suspend operations at its plant in Pyeongtaek, South Korea, from April 6 to April 9.
Kia did not reply immediately to a request for comment.
Questions & Answers
Q.Which Kia models are affected by this production suspension?
Which Kia models are affected by this production suspension?
The Kia Picanto and Ray models, produced by Donghee Auto, are affected. Hyundai Wia, which makes engines for these models, has also suspended some operations.
Q.Why has Donghee Auto suspended production of Kia vehicles?
Why has Donghee Auto suspended production of Kia vehicles?
Donghee Auto has suspended production due to a drop in overseas demand. This decrease is attributed to the spread of the coronavirus outbreak across Europe.
Q.How significant is the European market for the affected Kia models?
How significant is the European market for the affected Kia models?
The European market is very significant for the Picanto. Of the Picanto vehicles produced in South Korea last year, 73% were exported, mainly to Europe.
Q.Which companies are involved in these production suspensions?
Which companies are involved in these production suspensions?
Donghee Auto, a contract manufacturer for Kia, and Hyundai Wia, an engine producer, have announced suspensions. Kia itself did not immediately comment.