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July 6, 2021

Hyundai halts production in Brazil due to chip shortage

Hyundai's South American assembly plant is the latest to be halted due to the global semiconductor shortage.

By Graeme Roberts

Hyundai Motor has halted production at its vehicle assembly plant in Brazil due to the ongoing global shortage of semiconductors, according to local reports citing a company official.

South Korea’s leading carmaker said it had suspended operations at its Piracicaba plant in Sao Paulo for one week from Monday 5 July, with production scheduled to resume on 12 July.

The company cut production at the plant by a third last month due to the chip shortage and confirmed the facility would continue to operate on a single shift in the foreseeable future.

The plant has a production capacity of 300,000 vehicles per year when operating under a three-shift system.

It produces the HB20 sub-compact car, based on the Accent, and the Creta SUV.

Hyundai production around the globe has been significantly affected by the global shortage of semiconductors in the second quarter, including its facilities in South Korea and the US.

Despite this, the company’s global sales were up by over 26% at 2,028,974 units in the first six months of 2021 from weak year-earlier volumes, led by strong demand for SUVs such as the Palisade, Tucson and Santa Fe and its Genesis luxury brand.

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