Hyundai-Kia to Hike U.S. Investment 50%

Hyundai Motor Co. and its Kia Motors affiliate say they will boost their investments in the U.S. by 50% to $3.1 billion over the next five years.

The spending will expand capacity and bolster development work on advanced technologies such as self-driving vehicles and artificial intelligence, according to the group. It also confirms it is “diligently” pondering a third assembly plant in the U.S. to join existing facilities in Alabama and Georgia.

Kia launched its first factory, a $1 billion facility in Pesqueria, Mexico, last September. At the time, the facility was expected to eventually reach annual output of 400,000 Hyundai and Kia vehicles. But now group President Chung Jin-haeng says he is “agonizing” over whether to trim than target—presumably in favor of allocating more production in the U.S.

Chung denies today’s announcement is related to threats by incoming President Donald Trump to levy big import taxes on Mexican-made vehicles. He also says the company has to “be committed to the U.S. market,” describing it as one that can “make or break our global success.”