Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

South Korean carmaker Hyundai Motors has suspended operations at its South Korean plant while North America’s Tesla has reduced its output of semi-commercial trucks due to a continuing global shortage of semiconductor chips.

 

Hyundai plans to shut down operations at its Ulsan No.1 plant in South Korea from Apr 7-14, the company indicated in a statement on Tuesday. The factory has an annual production capacity of 311,000 vehicles. The company cited a components shortage as a reason to suspend operations at the South Korean facility. 

 

Tesla’s chief executive officer, Elon Musk, tweeted on Tuesday that the company was unable to scale up its semi-commercial trucks’ production due to the chip shortage. 

 

The carmakers haven’t disclosed the extent of the production shortfall. However, the worldwide shortage has cost the auto industry nearly 130,000 vehicles across all countries, according to media reports.

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