South Korean carmaker Hyundai Motor Co. is temporarily halting production at its major domestic plant in Ulsan due to weaker than expected demand from the North American and European markets.
Local news agency Yonhap reported on Thursday that the production of the Ioniq 5 and the Kona models will be stopped between April 24 and 30 citing “industry sources” who said the decision comes amid “weakening overseas demand.”
Last month, U.S. President Donald Trump and Hyundai announced at the White House an investment of about $21 billion in U.S. onshoring that includes a $5.8 billion steel plant with over 1,400 workers in Louisiana.
US x South Korea
Trump imposed a 25% tariff on imported vehicles and parts, rolling out duties on all imports from outside the U.S. in early April. South Korea’s finance minister, Choi Sang-mok, plans to meet with U.S. Treasury Secretary Scott Bessent in Washington next week for trade talks.
On Wednesday, the country’s Ministry of Economy and Finance announced a support package of over $25 billion to industries impacted by the recently announced U.S. tariffs. Earlier in the week, the nation had announced over $23 billion for the chip sector also in response to the tariffs.
Earlier this week, the founder and CEO of the U.S. carmaker Rivian said the auto tariffs “hit everybody” adding that the EV maker “relies on a supply chain that has a number of components that come from other countries.”
Hyundai Europe welcomed Xavier Martinet in January as its next President and CEO. Martinet replaces Michael Cole, who departs after 15 years with Hyundai Motor Group.
