SEOUL — Kia told its labor union in South Korea that it wants to suspend operations at three of its domestic factories as the coronavirus outbreak weighs on exports to Europe and the United States.
The union has not yet decided whether to accept the plan because negotiations over pay are ongoing, a union official said.
Under the plan operations would be suspended from April 23-29
“Kia Motors is currently reviewing the suspension of some of its plants in Korea in response to declining global demand due to COVID-19. However, a decision has not been made at this time,” Kia said in a statement.
Hyundai halted a line producing its Tucson SUV in the southeastern city of Ulsan from April 13-17.
Hyundai and Kia have suspended operations at most of their factories outside South Korea and China as the coronavirus spreads fast beyond Asia. Kia has resumed partial production at its plant in Slovakia that builds the Ceed compact car family and Sportage SUV for European markets.
Government restrictions on movement to slow the spread are impacting consumer spending worldwide.
South Korea’s exports for the first 10 days of April plunged 18.6 percent from the same period a year earlier, far below the 20.8 percent jump over March 1-10. Shipments of vehicles and vehicle components during the period tumbled 7.1 percent and 31.8 percent respectively