By on May 6, 2013

Chung Mong-koo - Picture courtesy Businesswekke.com

 

Hyundai’s top man shot down rumors of his company building a new factory in the U.S.  “We have no plan for a new U.S. factory for now,” Hyundai’s Chairman Chung Mong-koo told Reuters at Seoul’s Gimpo airport before leaving for the United States.

Rumors started flying when South Korea’s Financial News said that Kia is talking to Georgia state officials about constructing a new plant. These rumors were denied. Last week, Chung rekindled the flames by saying that Hyundai “will look into whether there are opportunities” to expand production overseas.

Chung is expected to visit Hyundai and Kia’s U.S. plants in Alabama and Georgia during his visit, which coincides with South Korean President Park Geun-hye’s U.S. trip.

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6 Comments on “Hyundai Boss: No New U.S. Plant...”


  • avatar
    mike978

    If as some say Hyundai’s sales in the US are in production limited (one reason given for their relatively lackluster growth in the past 12-18 months) then why are they not contemplating a new factory?

    • 0 avatar
      BrianL

      Hyundai still imports a lot of cars into the US. Did the US sign the transpacific trade agreement that would have dropped the tariffs on some imported cars? If so, I could understand why Korea would prefer to keep exporting for the time being.

      • 0 avatar
        bd2

        But Hyundai and Kia builds its most popular models, the Elantra, Sonata, Optima and Sorento in the US.

        The Santa Fe Sport would be up there was well, but right now due to capacity issues (Kia builds the Santa Fe Sport for Hyundai), the newer Santa Fe Sport trails the Sorento in sales.

        H/K could use another factory in which to build the Sorento, the Santa Fe Sport and the LWB Santa Fe.

        This would then allow Kia to build the new Forte at its GA plant alongside the Optima, which would lessen the risk of supply issues do to work stoppages in Korea which are still on going.

    • 0 avatar
      bd2

      The reason seems to be that their suppliers right now just can’t make do with another round of production expansion after years of exponential growth.

      But it really will be shortsighted of Hyundau/Kia if they don’t get on building another plant in NA sooner than later.

  • avatar
    akitadog

    Well, he said no plans for the US, not necessarily all of NA. Does cheap Mexico beckon?

  • avatar
    dantes_inferno

    Looking at Chung Mong-koo’s facial expression (of pain), I’d say he’s about stressed out and seriously needs a vacation…


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