A partially assembled Optima rolls down the line at the Kia plant in West Point, Georgia.
A fire at a key supplier plant has forced Kia to temporarily suspend production at its own factory in West Point, Georgia.
Even a brief shutdown is a potentially serious problem for the Korean carmaker as it has already been struggling to meet demand for products such as the midsize Optima sedan and Sorrento SUV, both produced at the Georgia facility. The fire also complicates matters for Kia’s Korean sibling, as that assembly line also produces some of Hyundai’s Santa Fe sport-utility vehicles.
Kia confirms it does not expect to resume production at the Georgia plant until the start of the first shift on Wednesday, according to a statement.
The maker declined to discuss details of the fire but wire reports indicate the problem follows a fire at a nearby factory operated by Korean supplier Daehan Solution. The parts maker has not responded to an request for comment.
Both Kia and Hyundai saw their shares slump following word of the production stoppage.
The two brands have been among the fastest growing in the American market in recent years – so much so that they’re both reaching capacity constraints. Hyundai Motor American CEO John Krafcik recently told TheDetroitBureau.com that the maker would be hard pressed to do much better than maintain its market share in 2012 after posting a series of annual sales gains in recent years.
Hyundai operates its own plant near Montgomery, Alabama, but as the bigger of the Korean siblings it has been counting on smaller Kia’s plant to help keep up with demand.
The Kia factory has a normal capacity of 300,000 units annually, making it one of the larger automotive assembly plants in the U.S.