Latest news with #HMMA
Yahoo
10 hours ago
- Automotive
- Yahoo
Hyundai's exports from US plunge in May and June
Hyundai Motor Company reported that its US vehicle manufacturing subsidiary, Hyundai Motor Manufacturing Alabama (HMMA), has sharply cut back on exports in the last two months as the plant prioritized domestic sales following the introduction of 25% duties on all vehicles imported into the US earlier this year. Hyundai Motor exported a total of 637,000 vehicles from South Korea to the US last year, but the company is having to readjust its global production strategies in response to the recent changes in US foreign trade policy. This includes 'redirecting' US-made vehicles to the domestic market instead of exporting them, to help reduce the company's exposure to US import tariffs. HMMA exported a total of 22,600 vehicles last year, including the Tucson, Santa Fe, Santa Cruz and Genesis GV70 SUVs, to other markets in the region. Exports in May plunged by 45% to 1,303 units from 2,386 units a year earlier, while in June the company exported just 14 vehicles. This is the first time monthly exports have fallen below 100 units since 2020. Production at the Alabama plant is also being expanded, to replace US imports from the company's Mexican operations. Earlier this year, a Hyundai spokesperson told reporters that, "in order to minimize the impact of US tariffs, we have implemented measures to shift Tucson production from Mexico to HMMA and have moved HMMA's Canadian-bound production to Mexico." Hyundai Motor Group (HMG) also completed construction of a new 300,000 unit/year plant in the US state of Georgia last year, with production ramping up this year as new Hyundai and Kia models are added. HMG has also confirmed that it will expand the Georgia plant's production capacity to 500,000 units per year later in the decade. "Hyundai's exports from US plunge in May and June" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hans India
4 days ago
- Automotive
- Hans India
Hyundai Motor's exports from US plant plunge amid tariff woes
Seoul: Hyundai Motor's vehicle exports from its US plant plunged last month, industry data showed on Sunday, as the company accelerates production realignment strategies to cope with rising tariff tensions. Hyundai Motor Manufacturing Alabama (HMMA), a U.S. production unit of the South Korean automaker, exported just 14 vehicles in June, a sharp decline from 1,303 units in the same month last year and 2,386 in May, according to the data, reports Yonhap news agency. It marked the first time HMMA's monthly exports fell below 100 units since April 2020, during the early stages of the COVID-19 pandemic. HMMA exported a total of 22,600 vehicles last year. Industry insiders attributed the sharp decline to Hyundai's production realignment strategy aimed at mitigating the impact of Washington's tariff policies, which impose a 25 percent duty on all imported vehicles. Hyundai Motor, which exported 637,000 vehicles to the United States last year, is reportedly considering redirecting U.S.-produced vehicles to the domestic market instead of exporting them overseas. To reduce tariff exposure, the company has earlier announced plans to boost U.S. production capacity by expanding output at its Alabama and Georgia plants to meet local demand. At the same time, it will scale back production of U.S.-bound models at Kia Corp.'s plant in Mexico. "In order to minimise the impact of U.S. tariffs, we have implemented measures to shift Tucson production from Mexico to HMMA and moved HMMA's Canadian-bound production to Mexico," a Hyundai official said during an earnings call in April. In line with that shift, Hyundai shipped around 2,100 units of the Tucson crossover from Mexico in February, but that number dropped to 522 in March and has remained at zero since April. Meanwhile, South Korea's automobile exports declined slightly in April from a year earlier, largely due to a sharp drop in shipments to the United States following Washington's imposition of steep tariffs on foreign-made cars, government data showed. The value of outbound shipments of automobiles came to US$6.53 billion last month, down 3.8 percent from a year earlier, according to data from the Ministry of Trade, Industry and Energy. By region, exports to North America tumbled 17.8 percent on-year to $3.36 billion, with shipments to the U.S. plunging 19.6 percent to $2.89 billion.
