Hyundai Profit Warning: US Tariffs Threaten Auto Supply Chains

What if US automotive tariffs increase by 15-25% within 6 months?

Model the impact of a 15-25% tariff increase on imported vehicles and components from Asia to North America. Apply tariff cost adders to all ocean freight shipments on major Asian export routes (South Korea, Japan, Vietnam to US ports). Calculate resulting landed cost increases, margin compression, and potential pricing power constraints. Evaluate alternative sourcing scenarios with nearshoring to Mexico or Canada.

What if automotive suppliers shift 30% of production from Asia to nearshoring locations?

Simulate a supply chain reconfiguration where 30% of automotive component and vehicle production shifts from South Korea, Japan, and Vietnam to Mexico, Canada, and US-based manufacturing. Adjust ocean freight volumes on transpacific routes downward by 30%, increase Mexico-US trucking capacity utilization, and model transition costs including facility setup, new supplier qualification, and inventory repositioning. Calculate net tariff savings against reshoring/nearshoring transition costs.

What if tariff-driven supply chain restructuring extends lead times by 4-8 weeks?

Model supply chain disruption during transition from Asian to nearshored sourcing. Assume 4-8 week lead time extension due to supplier qualification delays, production ramp-up constraints at new facilities, and temporary supply gaps. Evaluate inventory policy adjustments required to maintain service levels, calculate working capital impact from extended lead times, and identify critical components requiring safety stock increases or alternate supplier activation.