Hyundai Motor Co. and Kia Motors Corp. have said they will spend $3.1 billion in the U.S. in the next five years, as they joined other vehicle manufacturers to announce investment plans.
The planned U.S. investment by South Korea’s two largest automakers is nearly 50 percent 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 U.S. and may produce Hyundai’s upscale Genesis vehicles and a U.S.-specific SUV in the country, said the executive, who also oversees the strategic planning for Kia.
“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 1 million jobs in five years,” Chung said. “We will actively consider introducing new models that have increasing demand and profits.”
Hyundai and Kia join a growing list of automakers announcing investments in the U.S., even though they have yet to be singled out by Trump.
Toyota Motor Corp., Ford Motor Co. and Fiat Chrysler Automobiles said this month they’ll spend on U.S. plants after the president-elect threatened for months to slap Mexico-built vehicles with a 35 percent 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.
Hyundai and Kia will invest about 30 to 40 percent of the $3.1 billion on new technologies such as autonomous driving and green cars. The rest will be spent on facilities and adding new models, according to the company, AutomotiveNews reports.
