Korean based automotive industry thriving despite of unfavourable circumstances

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Korean automotive industry is not a huge one but definitely an influential one. It is home to some huge names in the industry with carmakers like Hyundai and Kia many more.

It is the sixth-largest auto industry and that is impressive as South Korea is a small nation compared to other nations. the Korean automotive industry began in August 1955, with Choi Mu-Seong, a Korean businessman, and two of his brothers (Choi Hae-Seong and Choi Soon-Seong), mounting a modified and localized jeep engine on a US military jeep-style car body made with the sheet metal from a junk oil drum can and military junk Jeep parts to manufacture its first car, called the Sibal and the nation never looked back.  The Shinhwa Group, a South Korean-based automotive parts manufacturer, plans to invest $42 million to establish a manufacturing operation in Auburn, Alabama. The project is expected to create 95 jobs.

The company’s Auburn operation will be its first manufacturing location in the U.S. The company is constructing its new facility in the Auburn Technology Park West, and Phase 1 of the project is expected to be completed in Summer 2020.

Initially, Shinhwa will produce driveshafts for vehicles made by Hyundai Motor Manufacturing Alabama in Montgomery and Kia Motor Manufacturing Georgia, just across the state line in West Point. Shinhwa plans to expand its production in Auburn in the future to provide parts for other car manufacturers. Among the adverse situations with Japan, it will be interesting to see how the nation fares on the global stage.