Donghee Auto, a South Korean contract producer for Kia Motors’ compact vehicles, has suspended production, a company official stated on Monday, citing a fall in overseas demand as the coronavirus pandemic has spread across Europe.
Donghee Auto produces Kia’s Picanto and Ray models. The company has suspended production at its plant located in Seosan, South Korea, until April 13, the official stated.
Of the 195,516 Picanto vehicles produced in the country last year 73% were exported, mainly to Europe, Korea Automobile Manufacturers Association data revealed.
Hyundai Wia , which produces engines for the Picanto and Ray, also stated in a regulatory filing on Monday that it will postpone operations at its plant located in Pyeongtaek, South Korea, from April 6 to April 9.
Kia did not reply right away to a request for comment.
Coronavirus has so far infected over 1,324,907 people and killed 73,703 worldwide.