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Hyundai Palisade, Genesis GV80 production halted over parts shortage

Genesis GV80 production has also stopped as the automaker sorts through a few kinks in the supply chain.

2020 Hyundai Palisade long term
The production stoppage shouldn't affect the US.
Sean Szymkowski/Roadshow

Production of the Hyundai Palisade, the brand's new three-row SUV, has come to a halt in South Korea following a parts shortage.

Just Auto first reported production of the big SUV had stopped on June 15 and cited a potential issue with the supply chain following a supplier employee's passing after contracting COVID-19. The production pause also reportedly affected the Genesis GV80, which is set to launch in the US this summer.

A Hyundai representative confirmed the production stoppage earlier this week but said the pause shouldn't affect US-spec Palisade models. The automaker didn't immediately respond when asked for an update on the situation.

A Genesis representative confirmed GV80 production had stopped, but the pause has not, and will not, affect US customers simply because production of the US-spec model hasn't started yet.

The Palisade had its best sales month in March just before the US economy largely shut down to slow the spread of COVID-19. As more restrictions lift -- even as the virus continues to spread -- we've seen a rather quick auto industry rebound. Still, sales estimates from before the pandemic will likely be off by a couple million units.

As for the GV80, Genesis CEO Mark Del Rosso told Roadshow the SUV had nearly 10,000 preorders to its name as of May. He also hinted at higher-than-expected demand for the model and emphasized that the launch had been nothing but smooth sailing, with no foreseeable issues to the vehicle's supply.

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First published June 19.