South Korea’s Hyundai Motor Group that runs the country’s two largest automakers Hyundai Motor Co. and Kia Motors Corp. pledged investment of around $3.1 billion in the United States over the next five years.

The group has joined the growing list of manufacturers including carmakers like GM, Ford, Toyota and Mercedes-Benz as well as foreign technology entities vowing new investments in the U.S. after President-elect Donald Trump bluntly pronounced punitive import tariffs or rewards to companies that either defy or support his hallmark agenda to bolster industrial activity and hiring in the U.S.

“We will invest $3.1 billion in the U.S. from this year to 2021, with 30 percent to 40 percent going to research and development of future technologies such as green cars and autonomous driving,” Hyundai Motor Co.’s President Chung Jin-haeng told foreign reporters on Tuesday. The investment for the next five years is 50 percent higher than the $2.1 billion investment it made over the past five years.

Hyundai Motor Group is also mulling building new production facilities in the U.S. if the demand increases in the country although it is still undecided about the timing, location, scope and other details.

The Korea’s largest automaker Hyundai Motor’s assembly line in Alabama has been operating at full capacity, rolling out 370,000 units of its flagship sedan Sonata and Elantra (Avante in Korea) and sport utility vehicle (SUV) Santa Fe annually. Its sister company Kia Motors whose manufacturing plant is located in Georgia turned out 360,000 units last year, exceeding its full capacity. The company produces its mid-sized sedan Optima (K5 in Korea) and SUV Sorento at the factory.

The nation’s two biggest carmakers have long been considering adding facilities in the U.S. as their manufacturing lines in the country are already operating at full capacity.

Kia can no longer rely on the factory in Mexico with an annual capacity of 400,000 units that began operation last year as Trump warned of high border levies on imports from Mexico.

Shares of Hyundai Motor closed Wednesday at 154,500 won, up 0.65 percent or 1,000 won from the previous session while those of Kia Motors ended at 41,150 won, up 1.11 percent or 450 won.

By Lee Seung-hoon

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