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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Hyundai Motor is considering significantly increasing hybrid car production at its Georgia electric vehicle plant, Hyundai Motor Group Meta Plant America (HMGMA). This move is in response to potential reductions in Inflation Reduction Act (IRA) subsidies that could take effect after the U.S. presidential election.
On the conference call following the Q2 earnings report on the 25th, Hyundai CFO Lee Seung-jo stated, "It seems like the presidential candidates Kamala Harris and Donald Trump are neck and neck. If Trump becomes president, there is a high possibility of implementing universal tariffs, IRA repeal or reduction, and relaxation of environmental regulations."
Lee added that while Trump’s promise to repeal the IRA is unlikely due to the IRA's benefits being concentrated in swing states, Hyundai is reviewing plans to significantly increase hybrid car production at the Georgia plant in response to possible IRA subsidy cuts and the temporary slowdown in electric vehicle sales. HMGMA is expected to be completed by October this year.
Hyundai is optimistic about its performance in the U.S. market in the second half of the year. The company reported sales of 254,000 vehicles in the U.S. market in Q2, up 12.9% year-on-year.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
