Hyundai is about to invest $3.1 billion in U.S. factories in next 5 years

Last Updated: January 20, 2017By Tags: , , , , , , , , ,

Hyundai has joined some other producers, so as Ford, GM, and FCA. They announced  plans about  U.S. factory investments. The mother company for both the Hyundai and Kia brands, Hyundai Motor Group, says it will raise its investments in the U.S. for 50 percent to $3.1 billion over the next couple of years, said Reuters.

Mexico factory planned a project to build make 400,000 cars a year

Trump has also to get attention to Hyundai-Kia, which has a new factory in Nuevo Leon, Mexico, which just started making cars. But the company says it didn’t make the decision because of pressure from the President-elect. Mexico is specialized in producing small cars. That was the plan for this factory until the recent slowdown in sales of small vehicle. Buyers tastes go toward bigger vehicles like crossovers and trucks. Those are categories in which Hyundai is lower, probably giving to producer seeing less sales raise in 2016 than it enjoyed in years before. In december, Hyundai Motor America CEO Dave Zuchowski has missing sales targets and that’s why he was fired. When it opened, the Mexico factory planned a project to build make 400,000 cars a year, but that figure was subject to change.

The $3.1 billion investment is going forward retooling factories that exist the U.S. and is also supporting research for self-driving vehicles. Chung Jin-haeng, Hyundai Motor Group president said the company is thinking about a new plant in the U.S. to produce high-margin, high-demand vehicles like SUVs and premium vehicles from its brand called genesis. The decision depends on will demand for Hyundai-Kia cars improve under the incoming Trump administration or not.

Though avoiding a tweet barrage from Trump wasn’t the major reason for the investment, that possibility was probably on the producer’s mind. Reuters said that Hyundai and Kia are among the lowest ratios of vehicles produced in the U.S. to vehicles that are sold here. Trump has impended that a border tax will be up to 35 percent on vehicles that are coming from Mexico.

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