Supply chains using the ‘just-in-time’ logistics model are only as strong as their weakest link.
And we’re going to be seeing much more of this until either China gets their act together or other companies figure out how to supply manufacturers.
Hyundai Motor, South Korea’s largest automaker, suspended the domestic production of its flagship sport utility vehicle this weekend as a result of a supply disruption caused by the deadly virus outbreak in China.
The deadly virus that first appeared in the central Chinese city of Wuhan has resulted in 259 deaths and spread to more than two dozen other countries.
Hyundai’s decision was made following factory closures in China that have led to shortages of supplies, including the complete electrical wiring system of a vehicle, the Korean automaker said.
“We have cancelled overtime factory hours that had been scheduled for Saturday and Sunday to produce our Palisade vehicle,” Jin Cha, a Hyundai spokesperson, told AFP on Saturday………..
Markets have struggled in recent days as the World Health Organization declared a global health emergency over the virus, with analysts concerned about its impact on world economic growth.