South Korea’s biggest automobile manufacturer, Hyundai Motor Group, announced a $21 billion investment in the United States of America in the presence of President Trump in the White House on Monday. The $21 billion investment includes a steel plant in Louisiana worth $5.8 billion and will provide 2.7 million tons of metric steel every year, creating more than 1400 jobs in the process. The steel plant is expected to supply steel to the auto plants in states like Alabama and Georgia.
The remaining $15 billion will also be invested in bolstering the presence of Hyundai in the states. For starters, $9 billion will be invested to boost the car production capacity of Hyundai to 1.2 million vehicles in the United States. Hyundai will use the remaining $6 billion to expand strategic partnerships with US companies in autonomous driving, robotics, artificial intelligence and advanced air mobility. After the announcement, the president of the United States of America, Donald Trump, said, “Money is pouring in. We want to keep it that way. This investment is a clear demonstration that tariffs very strongly work.”
You Might Also Like: Trump’s Trade Wars Slowing Down Global Economy
This is what many people believe. According to experts, this is a direct reaction to the tariffs introduced by President Trump. Moreover, automakers were the ones who received the biggest blow after the tariff announcements. By bolstering its car-making capabilities in the States, Hyundai has ensured that it can still do business in the biggest car market in the world.
