Professional Vision. Smarter Crypto Decisions.
Professional Vision. Smarter Crypto Decisions.
Alright, let's unpack what's going on with Hyundai. It's a story of innovation bumping up against, well, let's call it questionable ethics. We've got one set of headlines talking about massive investments in AI and robotics, and another set detailing allegations of child labor and exploited workers in their supply chain. The delta between those two narratives is… substantial.
Hyundai, along with Samsung and other Korean giants, is promising a massive influx of capital into the domestic economy. We're talking 125.2 trillion won (that's roughly $95 billion USD, for those of you playing along at home) through 2030. A big chunk of that, 50.5 trillion won to be exact, is earmarked for "new businesses like AI, software-defined vehicles, robotics, and hydrogen." They're even planning an AI data center and a robot manufacturing plant.
Now, Hyundai's claiming this is all about "nurturing Korea’s AI and robotics industries." And, sure, there's probably some genuine enthusiasm there. But let's be real, this investment also conveniently softens the blow from the recent tariff deal with the U.S. The cut in tariffs from 25% to 15% on exports to the US will save them roughly 4 trillion won (about $3 billion USD) per year. The company is also planning to shoulder the full amount of US-bound tariffs imposed on its primary parts suppliers this year. Smart move, cutting costs and building goodwill.
The plan is to raise overseas shipments from 2.18 million vehicles last year to 2.47 million by 2030, with exports of electrified models including EVs and hybrids set to surge more than two-and-a-half-fold to 1.76 million over the same period.
Here's where things get murky. While Hyundai's touting its AI-powered future, a lawsuit alleges the company is benefiting from exploited labor in its supply chains. We're talking child labor, immigrant exploitation, and even prison labor. Jobs to Move America filed the lawsuit in Los Angeles County Superior Court, accusing Hyundai and Kia of using cheap labor, then masking the practice to obtain contracts from public agencies in California. Labor lawsuit says O.C.-based Hyundai, Kia are exploiting children, immigrants, inmates
The allegations are pretty damning. One former Hyundai employee, Mark Miller, claimed there was "no training, no safety" at a plant in Montgomery, Alabama, where he helped make parts for the company. Another former employee, Rosalinda Soriano-Torres, alleged that immigrants were paid less than U.S. citizens for the same job and that she was fired when she asked for a less risky job after becoming pregnant.
If true, this is a major problem. State Senator Maria Elena Durazo has already raised concerns about California's public agencies purchasing vehicles from a company with potentially illegal supply chain practices. Los Angeles City Councilmember Hugo Soto-Martinez echoed those concerns, saying the allegations could affect the city's purchasing decisions.
It's worth pointing out that Hyundai and Kia haven't yet responded to these allegations. We don't have their side of the story, but the accusations are serious enough to warrant a thorough investigation.
And then there’s the brake pad situation. Changing brake pads should be simple, right? Not if you own certain Hyundai EVs, apparently. One Reddit user, [SoultronicPear], found out the hard way that Hyundai is paywalling access to basic repair functions, even after purchasing the necessary subscriptions and tools. Their account was suspended because it was "not intended for use for anyone but 'service professionals.'" Hyundai Paywalls Brake Pad Changes
This isn't just about brake pads. It's about control. It's about manufacturers using software locks to squeeze more revenue out of owners. It's a cynical move, especially when you consider the company's claims of innovation and progress. A glimmer of hope exists in the promises of Slate and Telo, but we will have to see if they make it to production first.
Hyundai's strategy seems to be: invest heavily in future-facing technologies while simultaneously cutting corners in less visible areas like labor practices and repair access. It’s a tale of two companies operating under one brand. The question is, can they maintain this balancing act? The data suggests that consumers and regulators are becoming increasingly aware of these discrepancies. And, frankly, I don't see that trend reversing anytime soon. The risk of reputational damage is significant, and the potential financial consequences (lawsuits, lost contracts) could easily outweigh any short-term gains.