Many Hyundai models are sitting at U.S. ports following the South Korean automaker’s decision to ramp up deliveries to the United States despite the coronavirus pandemic, Reuters reports.
In March, Hyundai aggressively increased domestic production at its factories to as much as 98 per cent of capacity. Hyundai didn’t do this just to satisfy new demand for its vehicles in South Korea but also bet on sales recovering in the U.S., shipping no less than 33,990 vehicles stateside last month, 4.3 per cent more than a year ago.
Reuters reports that consignments of cars shipped from South Korea are now sitting at U.S. ports as local dealerships are proving slow to take deliveries due to dwindling sales and rising inventory. There is no official word on exactly how many Hyundai vehicles are currently held in U.S. ports.
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In response, Hyundai idled a Tucson production line in South Korea last week for five days.
While Hyundai operates a large factory in Alabama, only about 50 per cent of the vehicles it sells in the U.S. are made locally compared to between 68 per cent and 85 per cent for its rivals Toyota, Nissan, and Honda.
“Hyundai Motor has been maintaining a strong cooperative relationship with our dealers around the world and we will overcome this difficult time by further enhancing collaboration with our dealers,” Hyundai said in a statement. “We will work to maintain the optimal level of inventory at each step of the supply chain… aiming for a faster recovery than others when the crisis softens.”
The Korean carmaker recently announced it will cover up to six months of payments for car buyers who lose their job due to Covid-19. However, it’s not the only car manufacturer making changes with the likes of GM, Ford, and FCA also launching attractive financial offers.
