As passage through the Strait of Hormuz has become difficult due to the Middle East war, Hyundai Motor is procuring parts by rerouting around the Cape of Good Hope in Africa. It also plans to increase local parts supplies in regions including North America and Europe.
José Muñoz, president and CEO of Hyundai Motor, said in an interview with Bloomberg on the 8th (local time), "We diverted ships to the Cape of Good Hope, off the usual route," adding, "As a result, lead times have increased significantly." The Cape of Good Hope is a representative detour from the Suez Canal, and choosing this route typically adds about 7 to 10 days to the voyage.
Hyundai Motor is holding related meetings every week to respond to supply chain disruptions. He said, "We are checking demand and supply and trying to maximize production capacity so there is no loss of output, but it is not easy." He added, "It has never been as difficult as it is now," and "Globalization is completely over."
Muñoz said parts had been procured from Korea to Europe via the Strait of Hormuz but noted that, in the long term, the company is also considering manufacturing in Europe locally. In the United States, it plans to expand local vehicle production to 1.2 million units by 2030, up 300,000 from the current level, and localize 80% of its supply chain.