Hyundai Investments Put $10 Billion in US Workforce
Foreign market automakers investing in the American workforce with car factories and plants is not a new development. Companies like Hyundai, Toyota, and BMW have massive manufacturing operations right here in the United States. The American workforce recently got one of the most recent Hyundai investments: a 10 billion dollar push for EV and autonomous vehicle technologies right here in the USA.
How are Hyundai investments being used in the United States?
Hyundai Chief Executive Officer (CEO) Euisun Chung told Fox Business after a meeting with U.S. President Joe Biden that Hyundai will invest 10 billion dollars in American manufacturing soon. The investment will include $5.5 billion focused on setting up an EV and battery technology plant near the town of Ellabell, Georgia.
In addition to the $5.5 billion Georgia project, Hyundai will invest $5 billion for what Chung describes as “artificial intelligence for autonomous vehicles and other technologies.” All of the investment will create jobs like those in Georgia, but it is unclear if Hyundai will cater to President Biden’s requests to consider American Union Workers.
Are there any Hyundai factories in America already?
Hyundai already manufactures vehicles in the United States. The Hyundai Motor Manufacturing Alabama (HMMA) factory is a 3.4 million square foot operation. Furthermore, the plant employs around 3,000 people to build vehicles. Although the Georgia facility will be more expensive, Hyundai’s investments totaled $1.8 billion to build the HMMA facility.
Which Hyundai vehicles are made in America?
The HMMA facility already produces the Hyundai Elantra sedan, the Hyundai Santa Fe, and the Hyundai Tucson. Also, HMMA builds the new and radically styled Hyundai Santa Cruz, a vehicle that Hyundai calls a “Sports Adventure Vehicle.”
Do any American companies manufacture vehicles in other countries?
Hyundai’s investment in the American workforce isn’t unheard of in the automotive industry. Many American automakers have factories overseas now. Ford and GM have had factories supporting vehicles for the European, African, and Asian markets for quite some time.
In fact, American companies like Ford often produce cars that are tailored to the target market and unavailable for purchase in the United States. For example, Ford made Utility Vehicles (Utes) for use in Australia until 2016, although American consumers couldn’t buy an example.
In addition to the legacy American companies, Tesla operates a Gigafactory in Berlin, Germany, as well as Shanghai, China. Gigafactory 5 Berlin builds the Tesla Model Y, and the Shanghai factory focuses on the Model 3.
If Hyundai investments in America continue, what will happen?
At the micro level, Hyundai will likely create thousands of domestic jobs with the move. Also, at the macro level, U.S. business partnerships with Korean companies like Hyundai and Samsung will likely continue to strengthen the two countries’ relationship.
Fox Business reports that the massive investments don’t guarantee a unionized workforce, but they guarantee job creation. Also, Hyundai will likely establish more manufacturing initiatives like Georgia and HMMA in the United States and ultimately sell more of its top-performing vehicles like the Elantra and Sante Fe.
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