Hyundai latest factory affected by chip shortage

2021 Elantra, made at Hyundai Motor Manufacturing Alabama

Hyundai Motor Manufacturing Alabama had to temporarily shut down this week due to the semiconductor chip shortage.

Hyundai’s Montgomery, Alabama, plant is the latest of the OEMs operating in the South to be impacted recently. Back in March, Ford had to briefly cancel shifts at its Kentucky Assembly plant. General Motors also experienced a shortage earlier this year, causing the automaker to build some vehicles without certain modules when necessary and then finish those vehicles when the chips became available.

According to press reports, the chip shortage at Hyundai will impact between 800 to 900 people of its roughly 3,000-employee workforce. For those temporarily laid off, unemployment will be available.

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Semiconductor chips are the brains behind an increasing range of products, from computers to phones to refrigerators. In the automobile industry, they control dozens of circuits, including air bags, power windows, catalytic converters, dashboard displays and more.

Hyundai Motor Manufacturing Alabama currently is producing four vehicles at the plant — the Sonata and Elantra sedans, and Santa Fe and Tucson SUVs. In the near future, the Santa Cruz will be joining the production lineup at the plant.

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