KIA Suspends Operations in 3 Domestic Factories in South Korea – Research Snipers

KIA Suspends Operations in 3 Domestic Factories in South Korea

A union official announced today, that KIA Motors has asked its labor union in South Korea that they are planning to postpone operations in three of its domestic factories as the coronavirus outbreak is affecting the exports to the United States of America and to the Europe.

The union hasn’t finalized the decision yet. They are still in a thinking process whether to suspend the operations from 23rd -29th April as the discussions over the salaries is still going on.

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KIA motors say the corporation is reviewing over the suspension of some of its plants in South Korea due to a noticeable decline in the global demand caused by COVID-19. Although there is no final decision made right now.

The price share of KIA motors fell down to 3.4% and its partner Hyundai Motor Co’s price share also declined to 2% in a wider market that was already low to 0.7% in the morning trade.

The Tucson sport utility vehicle which was being produced by Hyundai Motors Co. in the southeastern city of Ulsan has also come to a halt from 13th-17th April.

KIA and Hyundai Motors both have postponed their operations in many factories situated outside Korea and China as the COVID-19 spread is increasing all over Asia.

The restrictions applied by the government on movement is crashing consumer spending globally.

South Korea’s export fell down to 18.6% in the first 10 days of April which jumped to 20.8% from 1st-10th March. The shipments of vehicle components and vehicles also tumbled down to 31.8% and 7.1%.

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