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Hyundai Motor struggling to maintain production amid chip crunch

Output at domestic plant halted for third time in a month on device shortage

The global chip shortage is crimping Hyundai Motor's domestic production.   © Reuters

SEOUL -- Hyundai Motor on Monday suspended production of cars at a domestic factory for the third time in a month due to the global chip shortage, raising concerns that the scarcity could become a chronic hindrance to output.

South Korea's largest automaker, which together with affiliate Kia ranks No. 5 globally, said it ceased manufacturing at its plant in the western port city of Asan, which accounts for 7% of its revenue, citing problems in the supply of semiconductors for autos. The company said it will resume production on Wednesday.

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