Hyundai is one of Montgomery’s biggest employers where more than 3,000 team members are employed with high-paying jobs and full benefits. Additionally, more than 35 tier one suppliers are located in seventeen counties across Alabama. Further there are 78 total suppliers located throughout North America to support the Hyundai plant. Altogether, these suppliers created 7,000 additional jobs by Alabama based suppliers according to Hyundai’s website.
President Trump’s campaign made threats to trash the North American Free Trade Agreement or impose stiff import tariffs to keep more jobs at home. Mexico is attractive to the automotive industry due to low operating costs and a large number of free trade agreements. Alabama imports car parts from Mexico and if there was a tariff, the amount could add millions to costs which could be passed on to the consumer. According the U.S. Commerce Department, auto parts is the single largest product imported from Mexico with about $51.6 billion through November, 2016 and accounted for about 19% of all products shipped from Mexico. No one knows whether Congress will go along with a tariff on Mexican goods, or whether President Trump will keep his campaign position.
The concern for team member employees is if costs increase for the vehicles produced at the plant, would the number of vehicles needed go down, thus causing cuts in production hours? We have many clients employed with Hyundai and the ripple effect could interfere with their ability to fund their Chapter 13 plans. For those who are able to meet their budget, they may be pushed to discuss their financial options with us.
Whatever the outcome with President Trump’s position and Congress ultimate decision, I hope that our Alabama Hyundai employees are not affected by it.
Are you struggling with your finances due your hours being cut by your employer? Please call one of our Bond and Botes offices today for a free consultation to see if we can help you!