Hyundai Motor, Kia to invest $7.4 billion in U.S.
Hyundai Motor and Kia will invest $7.4 billion in the U.S. through 2025 to produce electric vehicles (EV), a major bet on the future of EVs in the country.
“Hyundai Motor will offer a suite of American-made electric vehicles to U.S. consumers starting next year,” the company said in a statement. Hyundai owns 33.88 percent of Kia, its sister company.
Building a production line on U.S. soil has become more necessary since the Joe Biden administration announced incentives for EVs made in the country.
The U.S. government, for instance, will replace its entire fleet of 645,000 cars and trucks with U.S.-made electric vehicles as part of a “Buy America” executive order signed in January.
The U.S. is the third largest EV market after China and Germany.
“This investment demonstrates our deep commitment to the U.S. market, our dealers and customers,” said José Muñoz, president and CEO of Hyundai Motor North America, in the statement.
While the car maker didn’t specify the location for new manufacturing facilities, local media outlets speculated that it will be in Alabama, where an existing Hyundai factory is located.
The media has speculated that the Ioniq 5, Hyundai’s first all-electric vehicle, will become the main model produced in the U.S., as the midsize SUV is scheduled to go on sale this fall in North America.
The investment will go beyond manufacturing EVs, the company said, and also involve “future mobility,” a buzzword for new kind of vehicles that use advanced technologies.
It mentioned urban air mobility, robotics and autonomous technologies as areas for further investment.
The automaker will establish a subsidiary in Washington to work on businesses that involve on-demand and air transportation services for passengers or freight.
The company also mentioned its acquisition of Boston Dynamics, a Massachusetts- based robot company bought by Hyundai Motor last year, to emphasize its commitment for robotics field.
BY PARK EUN-JEE [firstname.lastname@example.org]