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Hyundai is forced to stop the Montgomery production line for a week because to a parts shortage.
Due to a parts shortage, the Montgomery assembly line that produces the majority of Hyundai’s North American automobiles will go down this week, putting nearly 1,000 regular employees out of work for a week.
Due to a lack of parts due to a shortage of semiconductors, Hyundai Motor Manufacturing Alabama has halted manufacturing until June 21. Robert Burns, vice president of HR and administration at HMMA, stated that the business will aid employees in submitting unemployment claims and that HMMA anticipates this to be the only shutdown brought on by the lack of microchips.
No more delay due to this issue is anticipated, he stated. In order to best optimize production in the upcoming weeks and months, HMMA will keep collaborating with Hyundai Motor Group’s global purchasing team to distribute microchips to its U.S. manufacturing facility.
The Montgomery factory employs about 3,000 workers. The majority of them, including maintenance personnel, those who process finished vehicles, and workers in the engine shop who are producing engines for delivery to Kia’s facility in Georgia, will continue to work this week.
The plant will be shut down for its regularly scheduled annual maintenance from June 26 to July 11. The time will be compensated for by the employees. However, because of the timing of that unrelated maintenance, there have been some inaccurate reports regarding how long the parts-related stoppage lasted.
The Sonata and Elantra cars, as well as the Santa Fe and Tucson SUVs, are built at this facility. The company completed a $410 million expansion earlier this month, at which point it began distributing its new Santa Cruz truck.
As part of a $7.4 billion U.S. investment in cutting-edge technology and manufacturing enhancements over the following four years, Hyundai said in May that it will begin producing electric vehicles in Montgomery in 2022.