Kia to Shut Down 3 Plants

The reason for the shutdown was a falling demand in Europe and the US.

Kia plans to stop three assembly plants in South Korea. If the company's management is able to reach an agreement with the trade union organization, the plants will be idle from April 23 to 29. The reason for that is simple – a falling demand.

Kia to Shut Down 3 Plants photo 2

Kia has previously shut down a plant in Slovakia, where Ceeds and Sportages are assembled. Production was partially restored only a week ago. In addition, Kia, like most automakers, faced a shortage of components.

According to the European Automobile Manufacturers Association (ACEA), the market will lose about one and a half million cars as a result of the forced shutdown of factories. More than 1.1 million people may lose their jobs due to production cuts. According to the results of the first quarter, sales of new cars fell by 27% in Western Europe. The most crucial month was March. The market sagged by 53% in April. Italy, where car sales fell by 85%, suffered the most.

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