Hyundai to Move Tucson Crossover Production to US

Hyundai Motor Co. has confirmed that production of some of its Tucson crossover has been moved from Mexico to the United States.

The company is considering moving production of some US-bound vehicles from South Korea to other locations, as it announced a 2% rise in first-quarter operating profit and reaffirmed its annual earnings targets.

Hyundai generates about a third of its global sales from the US market, and imports account for about two-thirds of its US vehicle sales, according to data from Korea Investment & Securities.

Hyundai said in a statement that it expects business challenges to continue due to escalating trade wars and other unpredictable macroeconomic factors.

The task force, launched this month, will seek to minimize the impact of US tariffs on its finances and will develop plans to increase domestic vehicle component sourcing in the US. The Trump administration imposed a 25% tariff on autos on April 2 and plans to impose a 25% tariff on auto parts by May 3, threatening to raise car prices and reduce sales.