Hyundai Motor to Complete U.S. Metaplant This Month, Invites Trump to Inauguration Ceremony

By Michael Herh, BusinessKorea - Hyundai Motor Group is set to inaugurate its first overseas electric vehicle (EV) dedicated plant, the Hyundai Motor Group Metaplant America (HMGMA), in Georgia, USA, within this month. This significant milestone comes after a $7.6 billion investment decision made during Donald Trump's first term as president of the United States. The plant, which began trial production of the Hyundai Ioniq 5 in late October last year, marks a pivotal step in Hyundai's strategy to expand its production capacity in the U.S. and mitigate the impact of tariffs on imported vehicles.

The inauguration ceremony is expected to be a high-profile event, with Hyundai Motor Group extending an invitation to President Trump, acknowledging the role his administration's policies played in the investment decision. Hyundai Motor President Sung Kim emphasized the influence of Trump's trade policies, stating, "The investment in the Metaplant by Hyundai Motor Group was decided during Trump's first term and has now borne fruit, with over $7.6 billion invested in the construction of the plant alone."

The Metaplant is a cornerstone of Hyundai's broader strategy to establish an annual production system of 1.2 million units in the U.S., with the facility itself initially capable of producing 300,000 units annually, expanding to 500,000 units. This expansion includes plans to produce the large electric SUV Ioniq 9, scheduled for release in the U.S. in the first half of the year, and to incorporate hybrid cars into its production lineup.

Hyundai's investment in the U.S. is not only a response to the Trump administration's "America First" trade policies, which included the imposition of tariffs on imported goods, but also a strategic move to align with global trends in the automotive industry. The shift towards electric vehicles is driven by environmental concerns and regulatory pressures, and Hyundai's new plant positions the company to capture a growing market share in the EV sector.

The economic impact of the Metaplant is substantial, with the creation of over 8,600 direct jobs, a number that rises to approximately 14,000 when including nearby partners. This job creation is a significant factor in gaining political support and favorable public perception, as it contributes to U.S. manufacturing and employment.

However, the increase in U.S. production has raised concerns about potential decreases in Hyundai's domestic production and export volumes from South Korea. To address these concerns, Hyundai and Kia plan to diversify export routes and expand sales to ensure that domestic production is not disrupted.

Hyundai Mobis, a key subsidiary, plans to invest an additional $1.3 billion by 2030 to establish five parts production bases in the U.S., further solidifying Hyundai's commitment to the American market. This expansion is part of Hyundai's long-term strategy to strengthen its presence in North America and adapt to changing trade policies.

Source: https://www.businesskorea.co.kr/news/articleView.html?idxno=236878