Hyundai’s inaugural electric vehicle is poised to emerge from its cutting-edge, $7.6 billion Metaplant facility in Georgia by year’s end, marking a significant milestone for the automaker. As Donald Trump pledges to terminate EV mandates on his first day in office, Hyundai is poised to adapt swiftly to a potential paradigm shift. South Korea’s Hyundai has invested in an electric vehicle (EV) production facility in the United States, responding to the Biden administration’s push for increased domestic manufacturing and a shift toward a more sustainable energy landscape. If President Trump were to reverse all the progress made by his predecessors, the consequences would likely be severe.
By the end of 2024, Hyundai Motor Group’s Metaplant America facility will officially launch following a streamlined manufacturing process. The all-new 2025 Hyundai IONIQ 5 will be the first model to emerge from production.
Hyundai has invested a substantial $7.6 billion in the state of Georgia, resulting in the creation of approximately 8,500 new jobs. According to analysis by the Centre for Automotive Research, Hyundai’s new electric vehicle manufacturing facility is generating a substantial influx of investment, amounting to over $12.6 billion, and creating more than 50,000 new job opportunities in collaboration with its suppliers.
In 2019, Georgia officially honored Hyundai by designating a special day within the state in its recognition of the company’s significant economic impact and contributions to the region. The Basic Meeting officially decreed February 26, 2024, as “Hyundai Day” in the state of Georgia.
Hyundai is racing against time to establish a new plant that meets the requirements of the Inflation Reduction Act, which was enacted in August 2022, aiming to fulfill its objectives.
New vehicles manufactured at the facility are expected to meet the criteria for the $7,500 federal electric vehicle incentive, thereby leveling the playing field for Hyundai.
Hyundai has been absorbing substantial electric vehicle (EV) incentives to stay competitive with rivals that are already eligible for the tax credits. Despite Trump’s pledge to roll back electric vehicle (EV) insurance incentives if elected, Hyundai’s investments in the technology may ultimately prove futile.
South Korea’s Hyundai Motor Group is gearing up to counter the potential disruption posed by US President Donald Trump’s recent executive order aimed at bolstering the domestic electric vehicle (EV) industry.
Hyundai’s offerings, including the IONIQ 5 and 6, currently lead the way as some of the most affordably priced and fuel-efficient electric vehicles in the US market.
Because of this, Hyundai and its sister company Kia have already gained a significant advantage over many of their competitors. South Korean automakers Hyundai and Kia have shattered their previous electric vehicle (EV) sales records for the second quarter of the year, as consumer demand for eco-friendly transportation options continues to surge.
If Donald Trump is inaugurated as President, Hyundai has already begun preparing for potential changes to its electric vehicle (EV) insurance policies. As the 2024 US presidential election heats up in November, Hyundai is significantly amplifying its Washington D.C.-based lobbying presence to advocate for policy changes that align with its business interests.
The outcome of the election may prove a pivotal moment in Hyundai’s history or a costly misstep, requiring a significant investment of resources.
As the US election approaches, Hyundai officials announce a significant boost to their lobbying efforts, aimed at influencing policy decisions and securing favorable outcomes. Hyundai Motor and its affiliates invested a substantial sum in US lobbying efforts during the initial quarter of 2024, allocating a staggering $520,000 to sway public opinion and influence policy decisions. Sales skyrocketed by 147% year-over-year to $630,000 in Q2 2020, a significant leap from the $210,000 recorded during the same period in 2020. Hyundai’s influence in Washington has grown significantly, with its number of registered lobbyists increasing to 30, a substantial jump from the 19 it employed just recently.
Trump has vowed to repeal the non-existent EV mandate on his first day in office, despite its lack of existence. If Donald Trump were to be elected, Hyundai acknowledges that the existing electric vehicle (EV) subsidies, which are the primary objective behind its newly established Metaplant, may potentially cease to exist.
Electrek’s Take
The President’s assertion about non-existent electric vehicle (EV) mandates starkly highlights his limited understanding of the industry. He may be alluding to the EPA’s exhaust emissions regulations, which were officially implemented earlier this year.
The regulations aim to reduce the financial burden on millions of people by an estimated $100 billion annually, with benefits extending to lower costs for gasoline, healthcare, and climate-related expenses.
Scrapping these regulations would imperil not just the 2,000 American lives lost annually due to local weather-related air pollution, but also threaten the very survival of the US automotive industry, contradicting President Trump’s claims.
As American automakers such as Ford and General Motors continue to trail their Chinese counterparts, including BYD, in global market share, the gap between them appears to be widening. As governments globally redirect extra time and investments towards ICE (Internal Combustion Engine) automobiles, a surge in innovation and advancements can be anticipated. They’ll fall additional behind.
Ford’s CEO has emphasized the need for the company to develop compelling electric vehicles (EVs) within the next five years in order to remain competitive with industry leaders like BYD and other major players.
What happens if we fail to create innovative electric vehicles (EVs) within the next five years, and what does that portend for our future? We’re poised to contract into North America, and five years might prove overly generous.
While approximately 98% of Ford’s revenue stems from domestic sales within the United States? The US-based automotive company downsized its European management team at the end of February following the departure of senior executive Martin Sander, who joined Volkswagen. Ford has unveiled its latest addition to the electric vehicle family, the Capri EV, which hit the market this month, building on the success of the electric Explorer’s European rollout. Despite similarities, both models are fundamentally built upon VW’s modular electric architecture, the MEB platform.
As Ford progresses with its cost-effective EV platform, a shift in approach within the US market could lead to further delays. Ford has delayed the launch of its next-generation electric vehicles and its inaugural three-row electric SUV.
While the US remains a key market for Hyundai, ranking among its most important ones. Last year, Hyundai sold more cars in North America than in its home market of South Korea.
A potential shift in policy approach following a Trump presidency may reframe key concerns once more. Senator JD Vance, Trump’s vice presidential candidate, is reportedly behind a plan that would replace the existing $7,500 incentive for purchasing electric vehicles (EVs) with a similar credit of up to $7,500 for buyers of new American-made gasoline or diesel-powered cars.
While these adjustments would not single-handedly place the American auto industry at a disadvantage compared to most other countries, they will also impact investments entering the US. Moreover, this neglects to address the potential detrimental effects on one’s overall wellbeing.
