Hyundai Shuts Korean SUV Plant After Worker Tests Positive

By Ben Foldy

Hyundai Motor Co. has stopped building its popular Palisade SUV and other U.S.-sold SUV models due to a factory worker in Korea testing positive for the disease caused by the new coronavirus.

The work stoppage at the automaker's plant in Ulsan, South Korea began Friday. The company said the plant has been disinfected but it doesn't yet have a date to resume operations.

The plant makes the U.S.-sold Palisade and the smaller Tucson crossover - the company's second-best selling model - as well as the Genesis GV-80 and the globally-sold Santa Fe crossover. These SUVs are among the company's most popular models, particularly in the U.S., and an extended shutdown could eventually weigh on its global results.

SUVs accounted for just over 40% of Hyundai's worldwide sales last year.

U.S. Hyundai dealers say they haven't seen disruptions yet in the flow of new models, even though the virus outbreak previously idled some Korean plants in early February. But they're closely watching the situation, particularly on the Palisade which is already in short supply.

Write to Ben Foldy at Ben.Foldy@WSJ.com

(END) Dow Jones Newswires

February 28, 2020 14:58 ET (19:58 GMT)

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