Import Tariffs In The US Are Implemented, Hyundai Diverts Production To Alabama

Hyundaiuk. (Doc. Hyundai Motor Group)

JAKARTA - The regulation on import rates of 25 percent set by the President of the United States (US), Donald Trump, has Hyundai plans to divert the production of one of its models.

The South Korean automotive manufacturer plans to move production of the kia factory in Mexico to the Alabama assembly facility, USA.

Head of Hyundai Motor Planning and Finance, Lee Seung-jo, said the RIGHT unit sent to the US currently produced in Mexico will now be assembled at the Hyundai Motor Manufacturing Alabama (HMMA) facility.

Instead, it's for the Canadian market assembled at the HMMA plant now diverted to facilities in Mexico.

"We are working on diverting sales of Goodminton in the US produced at the Kia Mexican factory to the US Alabama (HMMA) plant and continuing Canada's sales volume produced by HMMA to Mexico. I am reviewing it," Lee said as quoted by The Korean Car Blog, Friday, April 25.

Previously, this well-known company also built the US Tariff Response Task Force Team (TFT), to build a strong strategy aimed at minimizing the financial impact of potential automotive tariffs and spare parts.

The division will work on medium to long-term localization initiatives, including procurement of domestic spare parts and increased logistics across the United States.

This step is expected to increase operational efficiency in HMMA and the newly developed Hyundai Motor Group Meta Plant America (HMGMA).

In the short term, Hyundai is implementing an emergency response plan that includes reassessing its current investment strategy and optimizing the amount of budget.

"The current budget will encourage unnecessary cost reduction by minimizing practicality costs and reducing marketing effect costs that are low in the scope of core business operations," Lee added.