Hyundai Motor Adopts Flexible Hours For Many Workers While Coronavirus Halts Production

Hyundai Motor Group, the world’s fifth-largest auto maker, is asking thousands of workers to return to their jobs despite fears of the fast-spreading coronavirus.

In hopes of minimizing chances of employee exposure to the disease, Hyundai Motor, including both the Hyundai and Kia brands, is adopting flexible hours for workers who might otherwise be on the job at the same time. The decision does not mean, however, that production is resuming at facilities in the U.S., Europe and Asia that have had to shut down as a result of fears of the virus.

A Hyundai official said the decision to “adopt flexible working hours instead of the intensive work system” is intended “to reduce close contact among employees.” The need for workers to report to offices and plants rather than work from home reflects concerns about falling share prices in both companies.

Hyundai policy contrasts with that of a number of other major Korean manufacturers whose employees are working mainly from home. Like other companies, however, Hyundai has had to stop production at most of its facilities around the world. 

Hyundai Motor stopped producing vehicles at its plant in Montgomery, Alabama, last week after one worker was diagnosed with the virus. Then, in what looked like a chain reaction, Hyundai’s sister company, Kia Motors, shut down its plant in the neighboring state of Georgia after failing to get engines from the Hyundai plant.

The closures mark an enormous setback for the Hyundai Motor empire, which also has shut down plants in eastern Europe–Hyundai in the Czech Republic and Kia in Slovakia for fear of the virus.

The Hyundai Motor Group, including Hyundai and Kia as separate entities producing vehicles with the same platform and major components, has set a target of total sales of 7,540,000 vehicles this year, up from 2019 sales of 7,190,000 vehicles.

The coronavirus, however, has raised questions as to whether Hyundai and Kia can raise sales this year in the U.S. market in particular. Share value in each company on the Korean stock exchange fell by 10% and 11% respectively.

It was partly in response to concerns about the virus that 49-year-old Chung Eui-sun was voted as chairman in place of his father, Chung Mong-koo, 81, the oldest surviving son of the legendary Chung Ju-yung, founder of the Hyundai empire.

A Hyundai spokesman said Eui-sun, who had been executive vice chairman, was elevated to the top post in order to manage the risk of a recession stemming from the closure of production facilities worldwide, including plants making parts for vehicles.  

An official with the Korea Automobile Manufacturers Association said global demand for new vehicles would drop sharply if the virus persisted for several months.

That glum outlook did not, however, stop Kia this week from introducing new gasoline and electricity-powered models of its Soul boxcar, a boxy vehicle that looks like a cross between an SUV and a sedan. The latest versions include devices for keeping drivers from veering into the wrong lanes or running into vehicles in front.