Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Hyundai to make Santa Cruz pickups at Alabama plant in $410 million expansion

Published 11/13/2019, 08:11 PM
Updated 11/13/2019, 08:11 PM
© Reuters. FILE PHOTO: The logo of Hyundai Motor is pictured at the second media day for the Shanghai auto show in Shanghai

(Reuters) - South Korean automaker Hyundai Motor (KS:005380) will start making its Santa Cruz pickup trucks at its U.S. factory in 2021, with an investment of $410 million, as it seeks a foothold in the popular, but highly competitive, segment led by U.S. rivals.

The Alamaba factory expansion was announced as President Donald Trump is expected this week to push back a self-imposed deadline on whether to put tariffs of up to 25% on imported cars and parts.

Hyundai has invested more than $1.1 billion in the Montgomery region in the last 18 months, with the latest move expected to add 200 new jobs and 1,000 people employed by regional suppliers and logistics companies.

The factory, which began production in 2005, was Hyundai's first assembly and manufacturing plant in the United States and now has 2,900 full-time and 500 part-time employees.

Hyundai, whose late response to the SUV market took a heavy toll on its sales in the United States, China and other markets, has expanded its SUV offerings in recent years.

The Santa Cruz pickup truck, introduced as a concept vehicle four years ago, will be its first for the U.S. market, joining three models - the Sonata, Elantra sedans and the Santa Fe SUV, now made in its sole U.S. factory.

© Reuters. FILE PHOTO: The logo of Hyundai Motor is pictured at the second media day for the Shanghai auto show in Shanghai

Last year, the United States and South Korea agreed to revise a trade pact sharply criticized by Trump, striking a deal to extend U.S. tariffs on Korean-made pickup trucks by 20 years, until 2041.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.