Strategic reconfiguration in the face of protectionist measures
In response to the 25% tariffs imposed by Donald Trump’s administration on vehicles and automotive components that do not comply with the rules of origin of the T-MEC, Hyundai Motor Company has implemented a production restructuring plan. The measure, which will come into effect on May 3, 2025, directly affects models assembled in Mexico and exported to the United States, particularly the Tucson SUV manufactured at the Pesquería, Nuevo León plant.
Operational details of the realignment
According to official statements, the corporation will move the manufacturing of the Tucsons intended for the US market to its facility in Montgomery, Alabama (HMMA), while it will relocate the production of units for Canada to Mexico. This decision seeks to optimize logistics costs and maintain competitiveness in North America, a region where it sold 1.19 million vehicles in 2024. The Mexican plant, operational since 2015, will continue manufacturing the model for markets with free trade agreements, as confirmed by Marcelo Ebrard, Mexican Secretary of Economy.
An analysis of production volumes reveals that, in 2024, the Pesquería factory assembled 16,736 units of the Tucson, while the combined sales of this model in the US during the first quarter of 2025 reached 53,973 units, representing 24.4% of the total sold by the brand in that country.
Geopolitical and economic context
This restructuring is framed in a complex scenario where:
- The T-MEC requires that 75% of automotive components be manufactured in the region to avoid tariffs.
- South Korea is not part of the treaty, affecting models imported from that country.
- Hyundai maintains a global network with 4.14 million units sold in 2024.
The company has formed a specialized working group to evaluate additional production transfers from Korea, prioritizing profitability and market share. Carlos Carrasco, Legal Director of Hyundai México, assured that production in Monterrey will continue, reorienting itself to alternative markets.
Impact on the value chain
This strategic decision reflects the growing importance of:
- Manufacturing flexibility: Ability to reassign models between plants in 90 days.
- Tax optimization: Taking advantage of bilateral trade agreements.
- Operational resilience: Mitigation of geopolitical risks.
Data provided by the automaker indicates that, after a decade in Mexico, it has marketed 400,000 units in the country, with 53,305 sales in 2024 alone. The Alabama plant, which also produces the Santa Fe and Genesis models, thus consolidates its role as a strategic hub for the US market.
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