HYUNDAI’S U.S. OPERATIONS CONTRIBUTE MORE THAN 94,000
PRIVATE SECTOR JOBS AND TOTAL IMPACT OF $7 BILLION TO NATIONAL ECONOMY
ANN ARBOR, Mich., November 11 ¾ The Center for Automotive Research (CAR) in partnership with Hyundai Motor America today announced the findings of a study quantifying – for the first time – the automaker’s impact on the U.S. economy. Conducted by CAR’s Sustainability and Economic Development Strategies group and commissioned by Hyundai, the economic impact study finds that Hyundai’s U.S. operations and dealerships have contributed more than 94,000 private sector jobs and in excess of $7 billion to the country’s Gross Domestic Product in 2011. Included in the analysis were Hyundai’s manufacturing and supplier, research and development, engineering, headquarters and dealership operations, among others.
“The importance of this study is directly related to the importance of foreign direct investment and operations in the sustainability of the overall automotive industry in the U.S.,” said Kim Hill, director of the Sustainability and Economic Strategies group at CAR, and the study’s lead. “While the domestic auto industry restructured and contracted in recent years, international manufacturers have continued to expand their U.S. operations. Hyundai’s growth, and the expansion of its product development and manufacturing capabilities in the U.S., has outpaced the industry and other major manufacturers. When taken together with its sister company Kia, Hyundai accounts for more than one-third of the South Korean direct investment and capital spending in the U.S.”
According to the study, of the total 94,000 jobs created by Hyundai, approximately one-third – or 33,000 – is supported by the automaker’s direct employment in its manufacturing-related activities in the U.S. Associated wages and salaries are estimated at $2.4 billion. Hyundai’s dealerships support the remaining 61,000 jobs, with associated wages and benefits estimated at $3.5 billion.
“The study confirms that Hyundai’s expanding U.S. operations are creating and retaining jobs, thereby having a significant impact on the country’s economy,” said Hill. “U.S. auto industry jobs that are related to Hyundai tend to be very well compensated, leading to higher than average household spending and tax payments impacts.”
Key findings of the report include:
Earnings and Employment
Investment and Purchasing
“Hyundai is proud of our American success story, and of what our growth and job creation have meant to the U.S. economy, automotive industry and American automotive workers,” said John Krafcik, president and chief executive officer of Hyundai Motor America. “With the majority of vehicles Hyundai sells in the U.S. now produced here, we are primed for continued investment and employment in the U.S.”
About the Center for Automotive Research
CAR’s mission is to conduct research on significant issues related to the future direction of the global automotive industry, as well as organize and conduct forums of value to the automotive community. CAR performs numerous studies for federal, state and local governments, corporations and foundations. The Sustainability and Economic Development Strategies group focuses its research on the long-term viability and sustainability of the auto industry, the surface transportation system, and the communities that lie at the heart of both the industry and the system. For more information on this study or CAR, please visit www.cargroup.org.
About Hyundai Motor America
Hyundai Motor America, headquartered in Cost Mesa, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 800 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully transferable new vehicle warranty, Hyundai’s 10-year/100,000-mile power train warranty, 5-years of complimentary Roadside Assistance and the Hyundai Trade-in Value Guarantee. For more details on Hyundai Assurance, please visit www.HyundaiAssurance.com. For more on this study or Hyundai’s operations in the U.S., please visit www.HyundaiAmerica.us.