Hyundai’s US expansion drives export and job growth

Hyundai Motor Group has seen a rise in exports to the United States, domestic production, and employment over the past two decades since it began manufacturing vehicles in the U.S.

According to the auto industry on March 31, this year marks the 20th anniversary of Hyundai’s establishment of local production in the U.S., which began with the launch of its Alabama plant in 2005. Last year, the group produced approximately 720,000 vehicles in the U.S., accounting for about 40% of Hyundai and Kia’s total American sales.

Since setting up local production in the U.S., Hyundai’s exports to the American market have increased significantly. In 2004, Hyundai and Kia’s U.S.-bound exports totaled $9.184 billion. That figure had surged 198.5% by last year to $27.415 billion. The number of exported vehicles also grew 37.2%, from 738,858 units to 1,013,931 during the same period.

Korean auto parts suppliers have likewise seen significant gains in exports to the U.S. Shipments of car parts jumped from $1.175 billion in 2004 to $8.22 billion last year—an increase of 599.6%. In terms of Korea’s trade surplus rankings by category, auto parts climbed from seventh to third place.

Hyundai and Kia’s domestic employment and production also grew by nearly 30% over the same timeframe. Vehicles produced in Korea increased from 2.69 million in 2004 to 3.41 million last year, which is an increase of 26.5%. The number of employees rose 29.7%, from 85,470 to 110,884.

Given this precedent, Hyundai emphasized that its record-setting $21 billion investment in the U.S. (approximately 31 trillion won) will not undermine domestic jobs or production. At the dedication ceremony for Hyundai Motor Group Metaplant America on March 26 (local time), “Even with rising U.S. production, we will continue to expand both domestic sales and exports," Hyundai Motor Vice Chairman Jang Jae-hoon said.


김형민 kalssam35@donga.com