Company - - Jan 17,2017
The South Korean automotive group, Hyundai Motors Co. and its affiliate Kia Motors Corp., said in a joint statement that they will spend $3.1bn in the US in the next five years.
Hyundai and Kia Motors Corp. are joining other automobile manufacturers in publicizing investment strategies after threats from Donald Trump over huge levies on auto imports from Mexico.
The Hyundai Motor Co. commented that it plans to lift US investment by 50% to $3.1 billion over five years and may construct a new automobile plant in the United States.
Hyundai Motor Co. and Kia Motors Corp., which create the Hyundai Motor Group have not been openly criticized by President-elect Donald Trump but may have sensed vulnerable because amid top automaker brands, they have one of the lowest ratios of cars manufactured in the United States to cars sold.
The president of Hyundai Motors Group, Chung Jin-haeng, denied that the plan of the group was driven by pressure from Mr. Trump. He further added that the US market is strategically a very significant market for Hyundai Motor Co. and success or failure in this region is a barometer of the company’s success globally.
Chung also said, the company’s interest in the US market is reliable regardless of the govt. of the day.
Under burden to deliver on campaign promises to revive US industrial jobs, Donald Trump has cautioned of a 35% border tax on automobiles imported from Mexico, where many automobile manufacturers have taken benefit of the nation's lower labor charges.
Hyundai Motor Co. has been considering to increase its plant in Alabama and Montgomery which manufactures the Sonata, Santa Fe crossover and Elantra sedans. Hyundai’s factory is running at its highest ability of 370000 cars per year. While, Kia Motors Corp.’s plant in West Point, Georgia is also running at full capacity of producing 360000 units per year.