The economic and societal benefits deriving from the presence of Hyundai in Europe – January 2016

Practice Area:Public Policy
Tagged: analysis of economic developments EC/EEA qualitative analysis

LE’s new report on the economic and societal impact of the presence of Hyundai in Europe underlines the increased number of jobs attributed to the carmaker’s European operations. Including those employed directly at Hyundai facilities or indirectly in the supply chain, sales and distribution, some 155,000 people owe their jobs to Hyundai Motor, compared to 129,000 in a 2013 study – an increase of 20%.

The tax contribution of Hyundai Motor to European governments during 2014 was €870 million, taking into account customs duties, sales and income taxes, further supporting the region’s economy.

Hyundai Motor has increased its ties with suppliers in Europe, particularly through its manufacturing plants in Czech Republic and Turkey. Of the €3.4 billion of supplies purchased at the factories, 74% were sourced within Europe, according to the report – this has increased from 72% in 2013.

The London Economics study finds the total gross value added (GVA) is €2.4 billion across the areas of manufacturing, supplies, research and development, sales and distribution. GVA measures the contribution to gross domestic product, taking the value of goods and services by a company net of input costs.