South Korean Car Manufacturer Hyundai Completely Suspends Vehicle Production at Its Plant in Piracicaba, São Paulo State

Written by Valdemar Medeiros

Published on 08/07/2021 at 11:52

Fábrica da sul-coreana Hyundai, em Piracicaba, foi inaugurada em 2012 — Foto: Thomaz Fernandes / G1 / Arquivo

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The Automotive Giant, Hyundai, Suspends Its Vehicle Production at the Piracicaba Plant in the Interior of São Paulo. The Plant Had Already Suspended Two Shifts by the Brand and Will Now Be Completely Paralyzed Until July 12

One of the largest automakers in the world, Hyundai, has suspended vehicle production at its factory in Piracicaba, in the interior of São Paulo, which produces cars like HB20 and Creta. The South Korean automaker had already suspended two shifts, keeping only one in operation; however, the chip shortage has made the situation even more complicated.

Semiconductors Are Responsible for the Suspension of Activities at the Factory

Currently, the entire Piracicaba factory has suspended activities, including vehicle production. This occurs due to the lack of semiconductors, with the expected timeframe for activities to normalize by July 15. However, the two shifts that had been suspended by Hyundai at the Piracicaba factory will be reinstated on July 12.

Thus, Hyundai will lose one-third of its monthly vehicle production due to the shutdown in São Paulo, which will partially affect the sales of the HB20 and other derivative models like the SUV Creta, which is awaiting the new generation.

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The Importance of the Piracicaba Factory

Hyundai Motor Brazil officially began its construction in Piracicaba, São Paulo, on February 25, 2011. The plant occupies a total area of 1,390,000 m², with 130,600 m² of that being built area. The first Research and Development Center of Hyundai in the Southern Hemisphere is also located at the Piracicaba factory.

In addition to all this, there is a 3-kilometer test track so that 100% of the vehicles produced at the plant can be tested. The city in the interior of São Paulo was chosen for this huge venture due to its good infrastructure, skilled labor, and also an established local supplier park.

Semiconductors Continue to Disrupt Vehicle Production of Various Automakers

In May, Nissan, which had already halted vehicle production at its plant in Resende (RJ) due to the pandemic, was forced to make another suspension two days after General Motors also announced a work stoppage.

Nissan’s shutdowns lasted for five days in June, also due to the semiconductor shortage. The Japanese factory in Resende employs approximately 2,000 workers.

Several companies have also announced the suspension of their vehicle production, such as Volkswagen, which halted its plants in São Bernardo do Campo, Taubaté, São José dos Pinhais, and São Carlos. Another company that was also forced to suspend production was the German Mercedes-Benz, which halted its factory in Juiz de Fora (MG) and in São Bernardo do Campo (SP).

South Korean Car Manufacturer Hyundai Completely Suspends Vehicle Production at Its Plant in Piracicaba, São Paulo State

The Automotive Giant, Hyundai, Suspends Its Vehicle Production at the Piracicaba Plant in the Interior of São Paulo. The Plant Had Already Suspended Two Shifts by the Brand and Will Now Be Completely Paralyzed Until July 12

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