Hyundai and Mercedes-Benz Invest in Alabama Amid Tariff Challenges
Hyundai Motor is set to invest $21 billion by 2028 to enhance its North American supply chain, while Mercedes-Benz is committing $4 billion to expand local production in Alabama. These moves are critical for both companies to navigate high tariffs and secure their market positions in North America.
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Hyundai Motor and Mercedes-Benz are investing significantly in their Alabama production facilities to counter the Trump administration's high tariffs. Hyundai is implementing a 'Network Defense' strategy, focusing on a robust supply chain across North America with a $21 billion investment by 2028.
In contrast, Mercedes-Benz is pursuing a 'Direct Production Shift' by investing $4 billion to increase local production and rebranding its products as 'Made in Alabama.' Both companies are also competing to attract skilled labor, with Hyundai promising a 25% wage increase by 2028, while Mercedes-Benz is offering extensive hiring and benefits. This competition may lead to increased local labor costs but could also stimulate regional economic growth.
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