economy assignment 1 1

Hyundai Motor Group, Inc.

Currently, the Management of Hyundai Motor Group is reviewing its North American operations.

In this process, it has hired your consulting firm to provide an outlook on the prospects of

moving their operation from Montgomery, Alabama to another site. The company faces an

uncertain future with US trade restrictions and tariffs. The CEO has tasked you with developing

the plan of action for the company’s automotive division (this includes Hyundai and KIA). The

CEO needs your recommendation of possible location choices to minimize any financial

damage that the company would face if the trade situation worsens in the future. Currently,

approximately 30 percent of cars produced in the company’s US plants are exported to countries

throughout the world except for China. The CEO wants your recommendation of possible location changes for the US operations. The company will likely not change location; however, the CEO wants to keep all options available for the near future.

You will need to do your research on the several factors for this assignment; these include but

are not limited to:

Relationship with the South Korean Government

Availability of raw materials

Availability of trained labor

The ability of migration for senior and

mid

-level employees

Proximity to markets

The ability of the pliers to also locate

Shipping costs of materials

Reliability of shipping

Infrastructure needs/situation.

Transportation costs of exports

Government subsidies to locate

The CEO wants to have several options (at least 3) presented for planning purposes. While the operation will likely not move, the plan gives the company leverage in future negotiations. The report needs to address all the critical issues in the above list.