Hyundai’s first EV is set to roll off the production line at its new $7.6 billion Metaplant in Georgia later this year. With Trump vowing to end “EV mandates” on day one if elected, Hyundai is preparing for a sudden shift in leadership. Hyundai’s EV plant was built to comply with the Biden administration’s move to promote domestic production and move the US toward a cleaner future. What will happen if Trump reverses all the progress?
After fast-tracking production, the Hyundai Motor Group Metaplant America (HMGMA) is set to open by the end of 2024. The new 2025 IONIQ 5 will be the first to roll off the assembly.
Hyundai invested $7.6 billion, creating 8,500 jobs in Georgia. Research from the Center for Automotive Research (CAR) shows that, including its suppliers, Hyundai’s new EV plant is attracting over $12.6 billion in investments while generating over 50,000 new jobs.
Georgia even awarded Hyundai its own day in the state. The General Assembly passed a resolution declaring February 26, 2024, “Hyundai Day” in Georgia.
Hyundai has been rushing to get the plant up and running to meet the requirements outlined in the Inflation Reduction Act (IRA), passed in August 2022.
New vehicles produced at the facility are expected to qualify for the $7,500 EV, helping to even the playing field for Hyundai.
Hyundai has been passing on massive EV incentives to compete with rivals that already qualify for the credit. However, with Trump vowing to reverse EV policies if elected, Hyundai’s investments could be over nothing.
Hyundai preps for a Trump EV disruption
Hyundai models, including the IONIQ 5 and 6, are already some of the most affordable, fuel-efficient EVs in the US.
Because of this, Hyundai and its sister company, Kia, are already well ahead of much of the competition. Hyundai and Kia set new EV sales records in Q2 as demand continues climbing.
If Trump is elected, Hyundai is preparing for a sudden shift in EV policies. With the US election coming up in November, Hyundai is stepping up its lobbying efforts in the states.
Depending on the outcome, the election could be a game-changer for Hyundai or a massive waste of time, money, and resources.
According to a Hyundai official, the company is stepping up lobbying efforts in preparation for the US election. Data from OpenSectrets shows Hyundai Motor and its affiliates spent $520,000 on US lobbying in the first three months of 2024. That’s up 147% from the $210,000 paid in Q1 2020. Hyundai also has 30 lobbyists, up from 19.
Trump has already promised to “eliminate the EV mandate” on day one, although there isn’t one. Hyundai knows if Trump is elected, the EV subsidies, the sole purpose of the new Metaplant, may disappear.
Electrek’s Take
Trump talking about EV mandates that don’t exist already proves his lack of knowledge of the industry. He is likely referring to the EPA exhaust regulations, finalized earlier this year.
The regulations are designed to save Americans $100 billion in fuel, health, and climate costs a year.
Ending these regulations will not only put 2,000 American lives at risk from climate pollution every year but, contrary to Trump’s comments, it will also set the American auto industry up for failure.
American automakers like Ford and GM are already falling behind Chinese automakers like BYD in global markets. What will happen when they direct more time and investments toward ICE vehicles? They will fall further behind.
Ford’s CEO has said the company needs to build profitable EVs within the next five years to keep up with BYD and others.
“And if we don’t make profitable EVs in the next five years, what is the future? We will just shrink into North America.” And five years may be too generous.
About 98% of Ford’s profits come from the US. The American automaker trimmed its EU leadership team earlier last month after its top exec, Martin Sander, left to join Volkswagen. Ford launched its new Capri EV this month, following the electric Explorer in Europe. However, both are based on VW’s MEB platform.
Ford is working on a low-cost EV platform, but if the strategy shifts in the US, it could lead to further delays. Ford has delayed its next-gen EVs, including its first three-row electric SUV.
Meanwhile, the US is one of Hyundai’s most important markets. Last year, Hyundai sold more cars in North America than in Korea.
A shift in strategy with a Trump win will set things back. Trump’s VP candidate, Senator JD Vance, was behind the ‘Drive American Act,‘ which surprisingly would not only remove the $7,500 incentive to buy EVs but also replace it with a similar credit for new American-made gas or diesel-powered vehicles.
In the end, these changes would not only set the American auto industry behind nearly every other country, but it will also impact investments coming into the US. And that’s not even touching on the adverse health effects.
Source: Business Korea
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