Hyundai is set to invest $21 billion in US production, including $6 billion for AI, robotics, and autonomous tech, to secure its foothold amid looming Trump tariffs.
Hyundai Announces $21 Billion US Investment Amid Trump Tariff Threats
TWC Magazine: South Korean automaker Hyundai has unveiled a groundbreaking $21 billion investment in the United States. This significant financial commitment comes as the company seeks to protect itself from the looming threat of tariffs under former President Donald Trump’s trade policies.
Hyundai’s Strategic $21 Billion Investment in the US
Hyundai plans to invest $9 billion in expanding its US production capacity by 2028. This move aims to increase annual vehicle output to 1.2 million units and create 14,000 full-time jobs. The investment also includes $6 billion dedicated to forming strategic partnerships with US companies in cutting-edge sectors such as artificial intelligence (AI), robotics, autonomous driving, and advanced air mobility.
$5.8 Billion Steel Plant to Boost US Manufacturing
In addition to expanding its automotive production, Hyundai will establish a new $5.8 billion Hyundai Steel plant in Louisiana. The facility will produce over 2.7 million metric tonnes of steel annually, supporting the company’s vehicle production in Alabama and Georgia, while also creating more than 1,400 new jobs.
New Car and Battery Factory in Georgia
As part of its ambitious plans, Hyundai will also inaugurate a new $7.59 billion car and battery factory in Georgia. The new plant will have the capacity to produce 300,000 vehicles annually when fully operational. This complements Hyundai’s existing facilities in Alabama and Georgia, which can already produce 700,000 vehicles per year. The combined efforts are expected to further boost Hyundai’s production capacity in the US.
Trump’s Tariff Threat and Its Impact on Hyundai’s Strategy
Former President Donald Trump has threatened to impose new reciprocal tariffs on various countries, including South Korea, due to the trade imbalance. In response to these threats, Hyundai’s $21 billion investment signals the automaker’s strategy to mitigate risks posed by potential tariffs on vehicles and parts.
Trump emphasized that the new investment clearly demonstrates the effectiveness of tariffs in reshaping global trade dynamics. “Money is pouring in, and we want to keep it that way,” Trump stated in a public address, praising Hyundai’s investment as a triumph of his economic policies.
Hyundai’s Commitment to US Energy Sector
As part of its ongoing expansion, Hyundai also plans to purchase $3 billion worth of liquefied natural gas (LNG) produced in the US, further solidifying its economic ties with the country and contributing to the local energy market.
Implications for US-Car Makers and Global Supply Chains
The US auto industry has been closely watching the developments surrounding Hyundai’s investments. Carmakers, including General Motors, have lobbied against Trump’s tariffs on imported vehicles, arguing that such policies could increase costs and disrupt supply chains. GM CEO Mary Barra recently met with Trump to discuss the uncertainty surrounding tariff policies and its potential impact on her company’s $60 billion investment plan in the US.
Conclusion: Hyundai’s Strategic Investment in the US Market
Hyundai’s $21 billion investment is a clear response to the changing trade landscape, with an emphasis on safeguarding its US operations amidst Trump’s trade war rhetoric. The new investments not only boost Hyundai’s production and strategic tech partnerships but also provide a significant economic lift to the US workforce, especially in the automotive and energy sectors.
By securing a larger footprint in the US, Hyundai is positioning itself to remain competitive and resilient in the face of potential trade disruptions.
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