Hyundai Motor’s highly anticipated next generation Palisade and Palisade Hybrid, set for release in December and January respectively, could face serious challenges due to a prolonged strike by the Hyundai Transys union. Hyundai Transys, an essential affiliate of Hyundai Motor Group, primarily manufactures critical vehicle parts, including powertrain components such as 6 and 8-speed automatic transmissions and continuously variable transmissions (CVT).
The Impact of the Hyundai Transys Union Strike
For over a month, Hyundai Transys workers have been on strike, halting production and disrupting supply chains for Hyundai Motor and Kia alike. This strike has not only delayed vehicle assembly but has also pressured the automakers to adopt temporary production methods to keep up with demand. Hyundai was forced to partially suspend production at Ulsan Plant 1, affecting output for its popular small SUV, the Kona. Kia, too, had to resort to the “public pitch” method, which involves running empty conveyor belts as a workaround for parts shortages.
The delays caused by the strike have created particular concerns for the Palisade Full Change’s hybrid model. Originally, the hybrid version was slated for mass production starting in January 2025. However, current estimates indicate a delay of three to four months. The primary issue is that Hyundai Transys is the designated supplier for the hybrid transmission used in the next-generation Palisade, and with production at a standstill, the timeline for the hybrid model has been thrown into uncertainty.
Effects on Hyundai Motor’s Palisade Launch Schedule
While the delays primarily affect the hybrid model, Hyundai Motor has managed to keep the gasoline version of the Palisade Full Change on schedule. Mass production for the gasoline model is expected to begin on December 20, and Hyundai plans to rely on its current inventory to fulfill initial orders. However, supply levels may fluctuate, and the company is now urgently considering ways to diversify its parts supply chain to ensure continued production stability.
Consumer Response to the Delays
The prolonged delays in launching the Palisade hybrid model have understandably left many consumers frustrated. With wait times for the Palisade Full Change hybrid extended, some customers have shifted their interest to the gasoline version, while others are exploring alternatives such as the Hyundai Santa Fe Hybrid or the Kia Sorento Hybrid.
Amid these challenges, Hyundai Motor has continued testing its camouflaged Palisade Full Change prototype, signaling a determination to meet its revised production schedule. This resilience in testing and preparation demonstrates Hyundai’s commitment to bringing the Palisade Full Change to market, even under difficult circumstances.
Union Strike Ends Today
Today, Nov 11th, the Hyundai Transis union strike has officially ended, alleviating concerns about further disruptions to the Palisade Full Change launch. It is still unknown whether this situation could affect Hyundai Motor and Kia, specially ensuring the timely launch of the Palisade and Palisade Hybrid in December and January respectively.