Hyundai Motor Group recently announced a significant shift in its investment strategy, deciding to withdraw a planned US$20 billion investment from Mexico and redirect it to the United States.
This decision comes in response to changing economic policies and trade dynamics, including the imposition of tariffs by the U.S. government under President Donald Trump. The tariffs, aimed at encouraging domestic production, have prompted Hyundai to prioritize expanding its operations within the U.S.
The investment will fund several major projects, including the construction of a $5.8 billion steel plant in Louisiana and the expansion of Hyundai’s automotive manufacturing facilities in Alabama and Georgia.
These initiatives are expected to create approximately 14,000 direct full-time jobs and over 100,000 indirect jobs by 2028. The steel plant, in particular, will produce 2.7 million metric tons of steel annually, supporting Hyundai’s vehicle production in the U.S.
Hyundai’s decision to leave Mexico has sparked discussions about the impact of economic policies on foreign investment. The company had initially planned to establish operations in Guanajuato, Mexico, but cited concerns over Mexico’s economic policies and the U.S. tariffs as key factors in its decision.
This move highlights the influence of trade policies on global business strategies and regional economies.
Source: El Economista
