GM, other carmakers in South Korea adjust production schedules

Article by Christian Andrei, on March 23, 2011

Neighboring South Korea is feeling the brunt of the Japan disaster and this has caused General Motors and other carmakers to reassess production schedules over supply concerns. Spokesman Jay Cooney said that GM Korea has been regularly evaluating the situation and making adjustments in its plants as needed.

GM Korea and others face tighten supplies of components from Japan. One of those that are limiting production due to parts shortages is Renault Samsung Motors Corp., which suspended weekday overtime and weekend shifts, according to spokeswoman Cho Yena. The slowdown in its production will persist until the end of the month.

Cho said that Renault Samsung expects to lose about 2,000 to 2,500 units of production. Neither GM Korea nor Renault Samsung would name the parts that are in short supply.

Hyundai Motor Co. spokesman Frank Ahrens said that the breakdown in the Japanese supply chain doesn’t affect it much since it sources only 1% of its components from companies in Japan.

Hyundai gets its six-speed transmission for the Veracruz SUV from Aisin Seiki and a Denso-made alternator for use its R engine and Lambda engine.

Ahrens said that Hyundai’s stock of these items would last about a month of two. Meanwhile, Hyundai Mobis Co., the top supplier to the Hyundai-Kia Group, also gets very few components from Japan. It even considers this crisis an opening to attract new customers.

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