Hyundai to suspend production in South Korea

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Hyundai Motor became the first major global automaker to suspend production outside China, due to disruptions in supply chain caused by the Coronavirus outbreak.

Several car giants including Ford, Nissan and Honda Motor have already suspended some plants within China this week in line with Beijing's guidelines.

But now Hyundai has announced plans to gradually suspend its South Korean factories too starting on Tuesday.

The virus outbreak in China has disrupted supplies of a vehicle component, and factories will be fully idled from February 7 to around February 10, a union official said.

The factory suspension has been discussed since Monday due to a shortage of auto parts called wiring harnesses, auto industry officials told Reuters.

One analyst said quote "Hyundai and Kia may be more affected" (than their rivals) as they tend to import more parts from China.

South Korea imported over one and a half billion dollars worth of auto parts from China in 2019.

The virus is having a major impact on other sectors too:

Apple delayed reopening some suppliers' factories outside Wuhan to mid February.

And clothing brands H&M and Levi said they have already shut stores which has hurt sales.

This adds to the fallout that China the world's second largest economy has faced from the virus outbreak.

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