Hyundai Expands Hybrid Vehicle Production in Georgia

News Summary

Hyundai Motor Co. is set to incorporate hybrid vehicle assembly at its electric vehicle factory in Georgia, announced by CEO José Muñoz. The production will start next year, aiming for hybrid vehicles to make up half of the factory’s output by 2030. This expansion is part of a $2.7 billion investment to increase vehicle production, with a goal of producing over 80% of U.S. sales domestically by 2030. Despite facing legal challenges, Hyundai remains committed to its growth strategy in the U.S. market.

Ellabell, Georgia — Hyundai Motor Co. announced plans to incorporate hybrid vehicle assembly into its electric vehicle factory located near Savannah, Georgia. This significant decision was unveiled by Hyundai CEO José Muñoz during the company’s annual investor meeting held in New York City. The production of hybrid vehicles is set to commence next year.

Muñoz forecasts that hybrid vehicles could comprise up to half of the factory’s output by 2030 due to the current uncertainty surrounding the demand for electric vehicles (EVs) in the U.S. market. This move is part of a larger strategy intended to boost production capacity and accelerate investments in Georgia.

The Georgia factory holds strategic importance for Hyundai, as it is designed to support the company’s goal of increasing vehicle output and localizing production within the U.S. The $2.7 billion investment focuses on expanding the factory’s production capabilities at the Ellabell site, ultimately enhancing output to approximately 500,000 vehicles annually by 2028.

Hyundai has set a ambitious target to produce more than 80% of the vehicles it sells in the U.S. domestically by 2030. To achieve this goal, the factory aims to broaden its lineup of vehicles, increasing the number of hybrid and electric vehicle models from the previous two to ten. The company is also directing efforts toward producing a mid-sized pickup truck, a significant class in the U.S. automotive market.

Throughout this expansion phase, Hyundai is closely aligning its production of hybrid and electric vehicles with the evolving consumer preferences and regulatory policies in the U.S. market. The addition of hybrid vehicle manufacturing is viewed as a flexible opportunity to satisfy varying market demands.

Despite facing recent legal and regulatory challenges — including an immigration raid at a nearby battery factory that led to the detention of numerous workers and delayed the battery plant’s opening by two to three months — Hyundai remains steadfast in its commitment to its expansion plans in Georgia. The company is confident in its ability to comply with local laws and regulations as it moves forward.

Through its strategic investments, Hyundai is targeting substantial growth in vehicle output while also refining its financial metrics and improving operational efficiency moving ahead. The company has expressed its desire to continue forming partnerships with both local and international organizations to support its extensive operations in the United States.

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