Following President-elect Donald Trump’s threats to introduce 35 percent tax on vehicles imported from Mexico, The Hyundai Motor Group (KRX:005380) have announced plans to increase U.S. investment by 50 percent over the next five years.
Chung Jin-haeng, president of the group, has denied this decision is in response to pressure from Trump. He said:
“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 one million jobs in five years. We will actively consider introducing new models that have increasing demand and profits.”
Hyundai Motors isn’t the only car manufacturers that have unveiled new plans for new U.S. investment plans. Toyota Motor Corp (NYSE:TM), Ford Motor Co (NYSE:F) and Fiat Chrysler (BIT:F) have all pledged to increase investment in the U.S. General Motors Co (NYSE:GM) will announce on Tuesday whether it will invest $1 billion in its U.S. factories.
Hyundai have said between 30 percent and 40 percent of the investment would be in Research and Development whilst they also hope to develop self-driving and eco-friendly technologies. Some money would also be invested on upgrading the existing facilities in Alabama and Georgia.
According to a company spokesman, Hyundai-Kia has no additional plans to invest in Mexico and will not transfer production or jobs to Mexico.
“The U.S. market is strategically a very important market for us and success or failure there is a barometer of our success globally,” Chung said.
“Our interest in the U.S. market is consistent regardless of the government of the day.”