DONGHEE AUTO CO., which contract-manufactures Kia's small cars Morning and Ray, will halt production starting on the 27th. The fire at Daejeon Anjeon Industry on the 20th disrupted parts supply.
A DONGHEE AUTO CO. official on the 25th said, "We will partially halt Morning and Ray production starting on the 27th, and suspend all operations from Apr. 1 to 11."
DONGHEE AUTO CO. in Seosan, South Chungcheong, is a joint venture between Kia and parts maker Donghee Holdings. Starting with the Morning in 2004 and now the Ray, it contract-manufactures Kia's small cars.
The production halt stems from the fire at Daejeon Anjeon Industry on the 20th. Anjeon Industry manufactures and sells engine valves for automobiles and ships and is one of Hyundai Motor Group's key partners. The large-scale fire resulted in 74 casualties, and operations are currently fully suspended.
The Morning and Ray use the small-car-only "Kappa" engine, which also uses Anjeon Industry's engine valves.
An auto industry official said, "With engine valve inventories tight, priority is being given to high-demand large vehicles," adding, "Small cars are being pushed down the list, leading to production stoppages."