Hyundai is not sure when Russian plant operations will resume, uncertainty looms
South Korean auto giant Hyundai has said that it is not sure when its plant operations in Russia amid the Ukraine crisis, reports Reuters. The automaker is yet to solve the ongoing issues with components delivery at the company's assembly plant in St Petersburg, Russia. The automaker anno8unced a halt in its plant operations amid the Ukraine crisis. The automaker in a statement has said that its operations are suspended until further notice due to the ongoing global logistics issues with component delivery.
Hyundai also stated that the safety of its employees and customers remains the utmost priority of the carmaker. The company along with several other automakers suspended its business and plant operations in Russia in the wake of the country's invasion of Ukraine, which propelled fear of widespread war. As the US and EU imposed severe economic sanctions on Russia, several automakers announced the suspension of their business operations, export to Russia.
Hyundai was one of them suspending its plant operation in Russia since March 1. Hyundai along with its subsidiary Kia is among the world's top 10 biggest automakers in terms of sales. The company makes around 200,000 vehicles every year in Russia, around four per cent of its global production capacity.
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Automakers such as General Motors, Daimler truck, Mercedes-Benz, Ford, Honda, Volvo Cars opted for a similar path as they suspended shipments of vehicles to Russia following the country's invasion of Ukraine.
The crisis is claimed to be impacting the automakers adversely not in terms of sales, but through supply chain disruption as well. Ukraine is one of the major suppliers of wire harnesses, while Russia is a major supplier of chips. The conflict between these two countries has impacted the supply chain of these crucial components.