Daily Management Review

Hyundai and GM are ready to invest in the U.S.


01/17/2017


Hyundai Motor automaker declared its intention to invest $ 3.1 billion in existing manufacturing facilities in the United States. The company is also considering a possibility to build a new plant in the world’s most profitable car market, which will help create thousands of new jobs.



The South Korean automotive group, which includes Kia Motors Corp. branch, said it is going to invest over the next five years in research and development of new technologies such as autonomous vehicles, as well as modernize the existing facilities.

"The US market is critical to our success as a global automaker. We will continue to expand our presence in key markets. Our investment will also facilitate the US’s efforts to create jobs.", - said president of Hyundai Motor Jin-Haeng Chung to group of foreign reporters.

This statement was made amid growing pressure on automakers from the US authorities, who insist on boosting cars production in the US territory.

Last week, Toyota Motor stepped up its efforts emphasizing desire to increase contribution to the US economy, after being subjected to criticism from US President-elect Donald Trump. The company said it will invest billions of dollars into the economy over the next few years.

Representatives of Fiat Chrysler Automobiles have made similar statements. In particular, they reported their intention to invest $ 1 billion in two plants in the United States, which, on turn, would lead to creation of 2 thousand new jobs.

Hyundai currently has a plant in Montgomery, Alabama, and Kia launches a factory in the state of Georgia. 

Meanwhile, other market players also gave up. US automakers corporation General Motors (GM) intends to invest $ 1 billion in its plants in the US, and to transfer part of the production capacity from Mexico to Michigan. These measures are expected to create or save 1.5 thousand jobs, as stated in the company’s press release.

According to the automaker’s report, GM in 2016 put $ 2.9 billion into production in the US, and a total of $ 21 billion since 2009. "New investments relate to new vehicles, development of high-tech projects and creation of components", - the company stated. Its representatives have promised to submit details of the abovementioned projects in the course of the year. 

"In light of the fact that production base in the United States is becoming more competitive, we can increase our investment, which, in turn, will allow us to create jobs in America and benefit our owners," - noted CEO of General Motors Mary Barra.

Earlier, US President-elect Donald Trump criticized General Motors’ plans to open factories abroad. "Make (cars) in the United States or pay high taxes!" – the Republican wrote on his Twitter page. In response, Barra said that GM would not reconsider plans to deploy production in other countries. "Automobile business requires long-term planning when choosing locations for production, decisions are taken by two or four years in advance", - she said.

source: bloomberg.com






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