The recently concluded free trade pact between the US and South Korea will provide “almost nothing” to Hyundai, said the carmaker’s US chief John Krafcik.
Krafcik pointed out that the deal does not eliminate tariffs on Korean-built cars in the US until the fifth year, with tariffs on pickup truck being phased out from the eighth year over three years.
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“The benefits that accrue to us are relatively small,” opined Krafcik, noting that, in five years, Hyundai’s production in the US will increase.
According to Krafcik, Hyundai will import 200,000 Korea-made vehicles into the US in addition to manufacturing 420,000 vehicles in the US in 2011.
The company is currently increasing production at its Alabama plant from 300,000 to 330,000 vehicles in 2011 “through small, incremental changes. That’s a really good way to go.”
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