Inflation Reduction Act – Hyundai is Latest OEM to Build New EV Plant in the U.S.

Discussion in 'In the News' started by xcel, Oct 29, 2022.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] Initial production is set to begin in the first half of 2025 with an annual capacity of 300,000 vehicles.

    Wayne Gerdes – CleanMPG – Oct. 25, 2022

    2023 Hyundai Ioniq 6

    The 2026 may be produced in Georgia.​

    Oh boy is this going to be good! Hyundai officially broke ground on the Hyundai Motor Group Metaplant America (HMGMA) LLC’s new manufacturing plant in Bryan County, Georgia.

    The $5.54 billion investment was announced five months ago and includes plans to produce a diverse range of innovative Hyundai, Genesis, and Kia electric EVs plus a new battery manufacturing facility. HMGMA will create more than 8,100 jobs over the next few years as the company aims to establish a stable supply chain for EV battery and other EV components in the U.S. market. HMGMA’s new smart factory is expected to begin commercial production in the first half of 2025.

    Approximately $1 billion is anticipated to be invested by non-affiliated HMGMA suppliers in connection with the project in other locations.

    Hyundai Motor Group wants to lead the U.S. auto market’s EV transition with this new facility. The Group is accelerating its electrification efforts with the global target to sell 3.23 million full electric vehicles across the globe annually by 2030. To realize this goal, the Group plans to establish a global EV production network that will ensure a stable supply of EVs around the globe.

    Tesla Model 3

    This is already built here in the U.S.​

    Providing a more realistic tone to this release, Tesla currently owns the U.S. EV space with U.S. vehicle production facilities in Fremont, CA (Model 3, Y, S, and X), Lathrop, CA (Megapack), Nevada (Powerwall, Powerpack, Megapack), Buffalo, NY (Solar Roof, Supercharger), and Austin, TX (Model Y and Li-Ion batteries) that are up and running today. Most of their U.S. produced vehicles - Model 3s < $60k and Model Ys < $80k, should qualify for the full $7,500 Fed TC beginning in January of 2023, something Hyundai and Kia’s will not qualify until the first units come off the all-new GA assembly line.

    With the additional EV and battery production capabilities in the U.S., the Hyundai Group aims to maintain its position as one of the top three EV providers in the U.S. currently lead by Tesla, Ford, and Hyundai Motor Group (Hyundai/Kia) in third. How this will work out with no $7,500 Fed TC is unknown. A $7,500 discount to others MSRP maybe? Consider a mid-trim 2024 Chevrolet Equinox EV retailing for $40k minus the $7,500 Fed TC for an OTD retail price of $32,500 + Tax (on the $40k), Title and License minus any state incentives.

    2024 Chevrolet Equinox EV


    Will Hyundai lower the price of its 2024 Ioniq 5 SEL - the mid trim offering, from the current $46,250 down to $32,500 to compete? With an 8 to 10% operating margin, the Ioniq 5 SEL probably costs $40,000 or more to produce so it is doubtful Hyundai has the profit margin to play with others who will not only be offering a lower retail, but its customers will be able to knock that retail down further with the Fed TC.

    Whoever wrote the few paragraphs within the Democratically created and supported Inflation Reduction Act (IRA) regarding the non-expiring EV Tax Credits deserves my vote because finally foreign and even domestic automakers - that includes Ford, GM, Stellantis, Toyota, Honda, Hyundai, Mercedes, and BMW - will have to build their products here instead of shipping them in from everywhere else. I wonder what Nissan is going to do???

    America is back and it is back with teeth. ;)
    litesong likes this.
  2. rhwinger

    rhwinger Well-Known Member

    Mid 2025. Ugh.

    I really like the '6, and I know building a factory takes time, but not sure if I can wait until '25?
    xcel likes this.
  3. litesong

    litesong litesong

    Agree with you. I got wheels & tires to fit right onto Hyundai cars which will save me thousands. Presently, Hyundai’s latest EV cars are too expensive for me, altho their ICE vehicles have always been good deals. They keep dabbling with the Ioniq 3, which I might be able to afford, but probably not. Looking at the Chevy Bolt, even tho my wheels won’t fit.
    xcel likes this.

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