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 wi
ll 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 s
everal 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.
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