Hyundai halts Korea output as China outbreak fallout spreads

Hyundai Motors is suspending production in South Korea, a sign that the economic fallout from China's viral outbreak is spreading.

For other companies bracing for losses from coronavirus, the damage has so far been delayed, thanks to a stroke of timing: The outbreak hit just when Chinese factories and many businesses were closed anyway to let workers travel home for the week-long Lunar New Year holiday.

But the respite won't last.

If much of industrial China remains on lockdown for the next few weeks, a very real possibility, Western retailers, auto companies and manufacturers that depend on Chinese imports will start to run out of the goods they depend on.

In order to meet deadlines for summer goods, retail experts say that Chinese factories would need to start ramping up production by March 15. If Chinese factories were instead to remain idle through May 1, it would likely cripple retailers' crucial back-to-school and fall seasons.

"There's complete uncertainty,'' said Steve Pasierb, CEO of the Toy Industry Association. "This could be huge if it goes on for months."
"I would say it's weeks at the most,'' Closs said. One to two to three weeks.''
Hyundai said Tuesday that it was suspending production in South Korea "due to disruptions in the supply of parts resulting from the coronavirus outbreak in China'' and that it "was seeking alternative suppliers in other regions.''