Hyundai is making plans to expand its commercial vehicle offerings in an effort to catch up with competitors in a fast-growing global market. The automaker plans to invest $1.8 billion in its commercial vehicle segment by 2020, with hopes to expand its operations both globally and within the U.S.
The Korea Harold reports that Hyundai will invest the $1.8 billion in an effort to greatly increase its production of its commercial vehicles including trucks and buses by 54%, to about 100,000 a year. Currently, Hyundai (combined with parent company Kia) is one of the world’s largest automakers, but holds only 2.1% of commercial vehicles sales globally.
Hyundai will focus its efforts on both emerging markets full of opportunity and more competitive developed countries. “If the investment plan is realized as planned, the company’s Jeonju plant could grow into a global production mecca for commercial vehicles,’’ Hyundai said.
Hyundai details that “About 80% of the investment will be allocated to research and development, while the remaining 20% will be spent on expansion of the commercial auto production line in Jeonju, North Jeolla Province.”
The investment will bring about 1,000 jobs to the production facility in Jeonju, North Jeolla Province, and will help boost the local economy.