Kia is about to shut down a significant portion of its production in home country South Korea. The decline in demand from major export markets is the reason for this.
While the situation with the coronavirus is well under control in South Korea, this does not mean that the local car industry remains intact. Indeed, Kia and Hyundai export an important part of their home production to markets where public life is currently largely silent. They notice this in the export figures. European and American markets are currently hard hit by the effects of the corona crisis.
Reuters is informed by a South Korean union that Kia is therefore preparing its employees for a temporary production stop at three of its South Korean factories. Hyundai has already shut down production of the Tucson domestically this week. Although the plan to temporarily suspend the work is said to be approved by the unions, it is expected that this will happen. South Korean exports of cars and auto parts shrank by nearly a third in the past month and a half.