SEOUL (Reuters) – Hyundai Motor Group said on Sunday it will invest an additional $5 billion in the United States by 2025 to strengthen cooperation with American companies on advanced technology.
The group said the investments, announced during President Joe Biden’s visit to Seoul, are for robotics, urban air mobility, autonomous driving and artificial intelligence.
Hyundai Motor Group, which includes Hyundai Motor Company (005380.KS) and Kia company (000270.KS)On Friday, it announced plans to invest $5.5 billion in Georgia to build electric vehicle and battery facilities. Read more
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Hyundai’s new electric and battery vehicle manufacturing facilities will be based in the southern “right to work” state, where labor unions are less prevalent and cannot demand workers join.
Biden, a Democrat, has described himself as the most pro-union president in history. But the deal, announced by Georgia’s Republican governor, demonstrated the concessions the president might have to make while he would like to invest abroad.
“Hyundai and any company investing in the United States would greatly benefit from entering into partnerships with some of the most skilled, dedicated and engaged workers in the world, anywhere you can find them; they are members of American unions,” Biden said.
“Each project to manufacture electric cars and electric car batteries will be strengthened by the collective bargaining relationship with our unions.”
Hyundai Motor Group CEO Oison Chung did not comment on the US unions.
The new investment brings its planned total in the United States through 2025 to about $10 billion, up from the $7.4 billion it announced last year.
The world’s third-largest automaker by car sales did not say where the additional $5 billion would be invested in the United States.
The auto group said Wednesday it will invest 21 trillion won ($16 billion) through 2030 to expand its electric car business in South Korea. Read more
($1 = 1,273.5900 won)
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Additional reporting by Trevor Honeycutt, Hekyung Yang and Jack Kim; Editing by Bradley Perrett and Lisa Schumaker
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