Every company makes investments that it expects to generate returns in the future and sometimes politics sometimes gets involved. In the steps to the decision to making decision – there is numerous departments from the local level to the state level to the federal level involved in helping to influence the decision. Often the departments float tax cuts, incentives for training, infrastructure improvements and list can go on. The company then makes a decision and hopefully the location is in business for years to come and makes positive contributions to the community.
In an article by Jeff Amy of the Associated Press, Hyundai Motor Group of South Korea made a decision to invest $5 billion in an auto plant in Savannah, Georgia to produce up to 500,000 vehicles a year. The models will be a combination of electric and hybrid gas electric. Hyundais said it plans to make more than 80% of the vehicles it sells in the US domestically by 2030. The increase is a 20% for 60% to 80%.
Then politics came into the play, the Trump administration has increased the number of raids it makes on companies looking for people who do not have the proper documents. Acting on a tip, ICE arrested 300 South Koreans who were working in the plant and sent them back to Korea.
Would the raid stop the investment made into the US by Hyundai? the governments of South Korea and the US had serious talks. Time continues and state and local governments have promise up to $2.1 billion in tax breaks and other incentives. Georgia Governor Brian Kemp had conversations with the White House about the visa issue. Do not expect more raids.
Linking to dividend paying stocks, often times these companies have enormous reach for both the local and national communities. Within the reach is access to highest levels of government to ensure the process works for the benefit of the company and its shareholders.
There are more questions than answers, till the next time – to raising questions.