Hyundai to unveil US$20b investment in US push: CNBC
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The news: South Korea’s Hyundai is planning to announce a USD20 billion ($31.8 billion) investment in US onshoring on Monday, according to sources cited by CNBC.
The numbers: The spending includes building a USD5 billion steel plant in Louisiana, which will hire roughly 1,500 employees. Steel from the plant will be used at the carmaker’s two existing automotive plants in Alabama and Georgia to build electric vehicles. Sources told CNBC that Hyundai plans to open a third auto plant, also in Georgia.
The context: The announcement comes as carmakers across the globe react to Trump’s 25% tariffs across imports of steel and aluminium to the US.
Carmakers are rushing to ship vehicles and core components to the US to mitigate cost increases brought about by Trump’s import tariffs. The FT reports that February saw a 22% year-on-year rise in vehicle shipments from the EU to the US, while the number of shipments from Japan to the US rose 14%. Shipments from South Korea to North America climbed 15%.
The Tesla competitor’s investment is expected to be announced by President Donald Trump, Hyundai Chairman Euisun Chung and Louisana Governor Jeff Landry at the White House on Monday.
The source: CNBC
