Apparently, Trump’s plans are taking effect. Another factory raises new strategies in Mexico and mute a part of its production to the United States. In one of the most challenging moments in the automotive industry, any change could be lethal to the economy.
Is this factory of Mexico to go and move all its production to the United States?
With Trump’s tariffs, the automotive industry became Mexico, many factories They plan to move from the country and flee before the economy collapses (like this brand that thinks to leave Mexico). Now, another factory is deciding strategies to maintain its production.
We talk about the Popular Marca Hyundaiwhich has years of experience and great reputation in Mexico. But will it go completely from the country? They are studying a strategy not to leave their roots already planted in the region. It will continue to manufacture, but with some changes.
Hyundai has made it clear that his Tucson model will continue to be manufactured in Mexicoat the fishery plant, Nuevo León, despite economic complications. Therefore, it will maintain its current scheme, taking advantage of free trade agreements to export to other strategic markets.
While, will move a part of its Tucson production to the United States (Exactly in Alabama and Georgia plants), which will increase to supply local demand without facing new taxes. That is Trump’s goal, to increase national production.
Hyundai seeks to adapt to the new panorama without compromising its position
As the third largest automotive group in the world, Hyundai does not intend to leave the way free to Chinese or emerging market brands. In addition to strengthening your brand in Mexico, Hyundai an investment of 21 billion dollars in the United States, which will be executed until 2028.
It seems that they want to please Trump with national production, as the plan includes the Expansion of your new factory in Georgia and the creation of approximately 14,000 direct jobs, reinforcing its infrastructure in the North American country to reduce risks to future commercial wars.
It is an intelligent strategy that could make its way in both markets, both in the United States and Mexico. From the Latin American country, you can continue exporting to nations with free trade agreements, thus avoiding a greater tax burden and maintaining competitiveness.
In 2024, Hyundai exported from Mexico about 16,000 units of the Tucson model to the United States. When moving part of the production to Alabama and keeping the fishery plant operational, the company diversifies its risks and optimizes its supply chain.
What will happen to the future with automotive factories and their productions in Mexico?
The future is uncertain, we are not certain about what happens with the new 25 % tariff that directly affects the Mexican automotive industry, one of the pillars of national exports. However, brands like Hyundai continue to bet on the country hope.
Mexico is the main car exporter to the United Statessending in 2024 about 2.9 million finished vehicles, with a value exceeding 78,5 billion dollars. If automotive automotive exports are added, automotive exports reach more than 182 billion dollars annually.
Although the T-MEC gives some tariff concessions based on the percentage of US auto parts that incorporate each car, not all models comply 100 % with those requirements, which keeps the industry on constant alert.
Therefore, the Hyundai factory, with its move from one part to the United Statesnot only protects its current operation, but also anticipates changes to consolidate its presence in both countries. This shows us that the commercial industry is very changing, and the only way to survive in time is to adapt.
