Good news of the day

Hyundai Corp. Plans to Build Factory in Jordan

Hyundai Corp. has been pushing for the establishment of production and marketing operations for electronic goods in Jordan to expand its businesses in the Middle East. "President Juhn Myung-hun explained the plan to Jordan’s King Abdullah II in person and asked for support in terms of administration procedures and taxation," a company official said Tuesday.

The firm wants to use Amman, Jordan’s capital, as a bridge to the Middle East market, including war-torn Iraq. Hyundai chose Jordan due to its geographical advantages. Jordan’s king allegedly promised administrative and tax benefits to Hyundai Corp. and supported its move to enter the market of neighboring Iraqi, the company said.

Source: [The Korea Times ]

Jordan is moving on the right path ladies and gentlemn. Good things are bound to happen in the kingdom.

12 thoughts on “Good news of the day”

  1. Hyundai?! I should dedicate a whole post to how much I started hating that car even more these days! What a piece of vehicle-shaped feces. I loved my parents’ ’88 Lada much more.
    I want my car back now…

  2. I think this particular project is not automotive but electronic. These guys are big computer and electronic makers as well. A Korean friend of mine once explained to me the early Hyundai failings saying in essence, we live in a tiny country; a car that will run for 70,000 miles is a lot. They didn’t know about the particularly American trend to drive cars 200,000 miles and more. Hyundai fixed that and I believed they are ranked near the top of the heap for quality if you can believe that and they now offer a 100,000 mile warranty to appease those once stung.
    But that reminds me, I believe that there is a Mercedes automotive plant in Jordan as well. I think that Jordanians are involved in the final assembly of Mercedes cars. I’ll look around, I may have a picture somewhere.

  3. I thought Jordan only had bus assembly lines at ALBA. The engines may be Mercedes though.
    And btw, the loaner I was given is an ’05 Elantra with less than a 1000 miles on it and it feels and drives like a BMX.

  4. I don’t know about that. But there is (or was a year plus ago) an assembly plant for Mercedes in Jordan. I can’t remember all the details, just the picture from I think Agence France Presse of a Jordanian woman inside the engine bay putting things together with a few fellas off to the side. I’ll find it later today. It might have a caption embeded.

  5. Well Arash, this is really good for the Jordanian economy as if this plan works out Jordan will be the export hub of Hyundai products to the rest of the middle east. That’s really good news.

  6. Hubby,
    practically every type of auto company offers a 100,000 mile warranty out here in the states. how long have u been gone 😉
    whats up with tax breaks? isnt that illegal or something?

  7. Yes. But Hyundai was the first. And they had good reason from a bad reputation. Then their quality improved and other automakers follwed suit. It was a savvy business move.

  8. How’s that Natasha? They’re merely going to import parts and assemble them together. Then Hyundai will export the finished products and pocket the value added. There’ll be some limited effects on the Jordanian economy due to wages and related services. But this will kill the indigenous industries, if any.

  9. Well first of all they are gonna create job opportunities for locals, in addition to that they have to pay tariffs for operating inside the kingdom

  10. Fair enough, but that’s not the way to go for a developing country. Koreans themselves did the opposite, closed their borders, developed indigenous industries (Hyundai was paid huge state subsidies), eliminated the technological gap, started exporting their products, opened up once they felt they’re on equal grounds with industrial countries. Had they just assembled foreign products, they would be where Indonesia or the Philippines are at this moment. And they were just as poor a mere 30 years ago.

  11. The “great” Hyundai warranty in the US is:
    10 Year/100,000 Mile Powertrain Protection,
    5 Year/60,000 Mile Bumper-to-Bumper,
    5 Year/Unlimited Miles 24-hour
    Roadside Assistance
    The US Big Three don’t offer anything close to that for coverage without charging you an arm and a leg for their “extended warranty plans”. The basic limited bumper-to-bumper for them is 3yrs/36,000 miles (whichever comes first) and limited powertrain is 7yrs/70K miles. With many Americans driving >15K miles per year, the allotted mileage is usually reached first. But the word “limited” means that many parts are not covered and what you may think is being covered is usually not. After all these company’s are in business for the $, and once you buy the car and it turns out to be a lemon…well too bad…no refunds, exchanges, or returns.
    Although a little off topic….check out this story regarding the fine print in the car buying contract….I am sure the warranty’s have similar tactics in them:
    http://abcnews.go.com/WNT/Business/story?id=526106&page=1
    Linda,
    Tax breaks for opening the factory and doing business in that locale. Nothing illegal about it and it happens here all the time. Company X says to City W, we would like a tax abaitment or we’re moving to City Y who will give us a 10% tax break if we invest 100 million dollars over the next 5 years an buildings/employee growth.
    Why shut out the companies b/c the are just coming to Jordan to assemble the finished products. Any investment or job opportunities, Jordan will take right now, especially with the unoffical unemployment rate at 30%, and offical rate hovering at 15%.

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