Hyundai ends free maintenance for new car buyers as it evaluates tariff fallout

Hyundai Santa Cruz

Hyundai Motor Manufacturing Alabama (HMMA) celebrated the launch of the all-new 2022 Santa Cruz Sport Adventure Vehicle on Tuesday, June 22, 2021.

Hyundai is ending its free scheduled maintenance visits for new car buyers, according to Car and Driver.

While the “unsupportable” cost of the program might have done it in, analysts say it also may be due to the expected costs of the new Trump Administration tariffs on automobiles and other foreign goods.

At the same time, the South Korean automaker said it is continuing to evaluate the possible effect of the newest slate of tariffs issued this week by the Trump Administration on the cars manufactured at its Montgomery plant.

In a statement, Hyundai said customers who purchased a vehicle that included the Hyundai Complimentary Maintenance Program from 2020 through 2025 will experience no changes to their service.

The service will also continue for 2024 and 2025 vehicles sold or leased as new, the automaker said.

Once 2026 models go on sale, customers will have a choice of pre-paid maintenance plans.

Hyundai is also continuing to evaluate the possible effect of certain aspects of this week’s new round of tariffs announced Wednesday by President Donald Trump.

In a statement, the automaker said that its Montgomery plant “builds nearly half of the Hyundai vehicles sold in the United States.”

“(Hyundai Motor Manufacturing Alabama) does source parts from Mexico and those parts are compliant with the U.S., Mexico, Canada Agreement (USMCA). Therefore, they are not subject to the tariffs announced on April 2,” the company said. “We will continue to produce safe, high-quality vehicles for the North American market, while sustaining jobs at our facility and across our supplier network in Montgomery and surrounding communities.

Hyundai has made several moves related to the Trump tariffs.

Hyundai CEO Jose Munoz on Thursday said the Korean automaker doesn’t have any immediate plans to raise prices in response to the tariffs, according to Reuters.

Robert Burns, the chief administrative officer at the plant, told WSFA “the bottom line is, we’re not going to stop building cars.”

And Hyundai last month announced it will invest $21 billion on its U.S. manufacturing operations. That includes $5.8 billion for a steel factory in Louisiana that will employ 1,300 people.

William Thornton

Stories by William Thornton

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.