Kia Prepares Contingency Plan for Shifting U.S. Trade Policy

Kia Motors Corp. tells analysts it is setting up a “step-by-step, scenario-based contingency plan” to deal with the effects of U.S. President Donald Trump’s “America First” trade philosophy.

Trump wants carmakers that sell in the U.S. to build more vehicles there. He has threatened to impose hefty border taxes on vehicles from Mexico and perhaps Canada. So far he has not singled out Kia or its parent, Hyundai Motor Co.

Last September Kia opened a $1 billion assembly plant in Pesqueria, Mexico. The company hopes to double the factory’s output this year to 250,000 units, including vehicles carrying the Hyundai brand. Kia targets U.S. sales this year of 699,000 units, an 8% increase.