A new manufacturing facility and a new SUV are on the way.
Hyundai and Kia reportedly have big ambitions for future production in the U.S. The company said that it plans to invest as much as $3.1 billion in the U.S. in the next five years, following in the footsteps of companies like Ford and GM in the wake of President-elect Donald Trump’s proposed tariffs.
Part of the proposed $3.1 billion investment would include a new factory, which would be used specifically for production of Hyundai’s luxury Genesis brand; the company hopes to introduce as many as six models by 2021. It would also include production of a U.S.-specific SUV. The planned investment would signify a 50 percent increase over the amount the South Korean automaker has already invested in the U.S. in the previous five-year period. Just $2.1 billion was spent in that time.
In an interview with media members earlier in the week, Hyundai Motor President Chung Jin-haeng told reports that, "We expect a boost in the U.S. economy and increased demand for various models as President-elect Trump follows through on his promise to create 1 million jobs in five years. We will actively consider introducing new models that have increasing demand and profits."
But Hyundai and Kia aren’t the first to propose a more in-depth strategy. Ford recently announced plans to boost production in the U.S., while FCA announced more than a year ago that the company was investing heavily into a Michigan production facility. Toyota, meanwhile, has been threatened by President-elect Trump with a big border tax on Mexican-produced Corollas, but will continue to move forward with its Guanajuato plant and says it looks forward to working with Trump in future manufacturing practices.
Source: Automotive News