Hyundai halts Alabama production line over computer chip shortage


FILE – This July 26 2018 file photo shows the logo of Hyundai Motor Co. in Seoul, South Korea. Hyundai is recalling over 390,000 vehicles in the U.S. and Canada, Tuesday, May 4, 2021, for problems that can cause engine fires. In one recall, owners are being told to park outdoors until repairs are made. That recall covers more than 203,000 Santa Fe Sport SUVs from 2013 through 2015. (AP Photo/Ahn Young-joon, File)

MONTGOMERY, Ala. (AP) — A production line in Alabama that makes many of Hyundai’s North American vehicles will be halted this week due to a parts shortage.

The shutdown will leave about 1,000 regular workers temporarily unemployed for seven days, The Montgomery Advertiser reported.

The problem is that Hyundai Motor Manufacturing Alabama hasn’t been able to get enough parts because of a semiconductor shortage. As a result, production at the Montgomery plant will be suspended until June 21.

“No other downtime for this reason is expected,” said Robert Burns, vice president of human resources and administration.

The company “will continue to work with Hyundai Motor Group’s global purchasing team to allocate microchips to its U.S. manufacturing plant to optimize production in the coming weeks and months,” Burns said.

About 3,000 people work at the Montgomery plant. Most of them will continue to work this week, the newspaper reported. That includes maintenance workers, employees processing completed vehicles, and engine shop employees building engines to be delivered to Kia’s plant in Georgia.

The plant produces the Sonata and Elantra sedans as well as the Santa Fe and Tucson SUVs. It began rolling out the new Santa Cruz pickup earlier this month after finishing a $410 million expansion.

The company will help workers file unemployment claims, Burns said.

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