Mexican government urges Hyundai to open local manufacturing plant

Mexican government urges Hyundai to open local manufacturing plant

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The government of Mexico is constantly pressuring Hyundai Motor to build a new manufacturing plant in the country. The Mexican government has warned the company that if the plant is not made, then it will have to encounter restrictions on the import of its vehicles.

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Sources from the country – on the condition of anonymity – said that the government of Mexico is thinking of imposing restrictions on foreign carmakers, if they opt not to manufacture their vehicles in the country. The main targets of the recent pressure are Hyundai and BMW. There is a possibility that the site for a new plant can be Tijuana, which borders San Diego, where Toyota already has a factory.

The auto companies must have at least 50,000 units of local production capacity or they have to pay 20 percent on imports. In order to reinforce the brand of Hyundai, the company announced in August 2013 that it was creating its own sales unit in Mexico and will cancel its partnership with Chrysler. The government of Mexico now wants the company to take the next step and both sides are currently negotiating the matter.

Sources have also revealed that it is not going to be an easy decision for Hyundai and the company will try to acquire more benefits from Mexico before proceeding with the factory.

Photo Credits: Global