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Direct Foreign Investment Decision Proposal-Hyundai Motor & Brazil - Essay Example

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Direct Foreign Investment Decision Proposal-Hyundai Motor & Brazil

Considering future perspectives, according to Hyundai, the project will enhance economic strengths of the country and its people. During five years of survey, the company has designed the best tools to achieve success, so it will meet the customized Brazilian needs with the utmost potential. Since the amount of money required is very large, the company, seeks the Brazilian government’s financial support, as the project’s objectives will yield fruits within two years (Brainard & Martinez, 2009). Financing and Investment Strategy Hyundai Motor Brazil is a subsidiary of Hyundai Motor Group, based in South Korea. It views Brazil as an exceptionally attractive segment. For five years, the company has been conducting a research in the market, and Brazilian needs will be its first priority as the company seeks to create over three thousand jobs directly and another twenty thousand jobs indirectly. Therefore, the company perceives that the government grants will enable it to offer employment, run operations, and deliver the best satisfaction to the Brazilian market. Expectations are that, in a period of three years, all households will be able to purchase a Hyundai in the country. The company strategically seeks to offer outstanding HB20 car version, the first of its kind that will cater for all customers’ driving needs in the Brazilian environment. The company is committed to ensuring that its practices rhyme with Brazilian laws about industries, labor, environmental and economic requirements.

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The company needs the government to authorize its operations and to allow the use of 60,000 square meters of land at the appropriate location. It further needs the Brazil government to reduce taxes, which, when imposed inappropriately, may injure its performance. Effecting taxes and tariffs reduction, HBM will be able to offer the best of its car models in Brazil at cheaper prices. The cuts will also enable HBM to hit the target job number at favorable prices and ensure continuous growth of the number of workers and prospective suppliers. The company guarantees that all its products are tailor-made for the Brazilian markets. All this will result in the continuous support of, and trust in, the company’s products and, therefore, the company will focus on producing the best goods (Sachs et al., 2009). The cars will appear in different models, maintaining fuel efficiency practices for both manual and automatic transmission engines. This aspect will reduce fuel crisis and, consequently, cut down unnecessary costs, increase Brazilians’ income per capita, and promote the fast growth of the economy. Hyundai Motor Brazil (HBM) will strive to enhance the country’s economic progression rather than exploiting the economy. The core business of HBM being vehicle production, it ascertains that it will involve eight spare parts suppliers sourced locally to further indirectly reduce unemployment levels. The prices will be $15,000 US dollars, which is quite a brilliant offer in comparison to the imported ones (Sachs et al., 2009). Following the introduction of HB20, HBM will introduce a smaller version of the SUV model – Sonata (i45), inclusive of all its amenities and sub-compact features. Due to the distinct needs of Brazilians, the SUV will reach those customers who seek to drive stylishly and quickly on all kinds of terrains and with

Summary

Direct Foreign Investment Decision Proposal – Hyundai Motor to Brazil Name Institution Date Hyundai Motor Company seeks the Brazilian government’s financial support in opening a production plant that will specifically cater for the Brazilians. Due to the high and unnecessary importation and voyage costs, its new plant will help avail of the vehicles at reduced costs…
Author : padbergvanessa
Direct Foreign Investment Decision Proposal-Hyundai Motor & Brazil essay example
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