Hyundai, Kia plan $3.1-billion US investment

US investment by S Korea's two automakers is about 50% more than the previous 5-year period

Hyundai Motor Co and affiliate Kia Motors said they will spend $3.1 billion in the US in the next five years, joining other vehicle manufacturers in announcing investment plans amid threats from President-elect Donald Trump of higher levies on auto imports from Mexico.

The planned US investment by South Korea’s two largest automakers is about 50 per cent more than the $2.1 billion they spent in the previous five-year period, Hyundai Motor President Chung Jin-haeng told reporters in Seoul on Tuesday. The group is considering building a new factory in the US and may produce Hyundai Motor’s upscale Genesis vehicles in the country, said the executive, who also oversees the strategic planning for Kia.

“We expect a boost in the US economy and increased demand for various models as President-elect Trump follows through on his promise to create one million jobs in five years,” Chung said. “We will actively consider introducing new models that have increasing demand and profits.” Hyundai Motor and Kia join a growing list of automakers announcing investments in the US, even though they have yet to be singled out by Trump. Toyota Motor , Ford Motor Co and Fiat Chrysler Automobiles NV said this month they’ll spend on US plants after the president-elect threatened for months to slap Mexico-built vehicles with a 35 per cent import tax. Carmakers are eager to cooperate with the incoming administration as they prepare to ask for favors including weaker fuel economy rules and lower corporate taxes.

General Motors Co, the biggest US automaker, plans to announce on Tuesday it will invest $1 billion in US plants over several years, according to a person familiar with the matter. 

Bloomberg