When it comes to electric vehicles, the government of the US aims to kill two birds with a single stone. It is pushing for electric cars to replace internal combustion engine cars while also creating more jobs with US-made electric vehicles, especially EVs made in Union-backed factories. Hyundai Motor Group is ready to play along, as it has revealed its plan to make its Genesis GV70 EV in the US from 2022.
Hyundai will make the luxury EV at its Alabama plant.
The South Korean automaker is banking on the US government’s incentives that apply to EVs made in the country. This will make its electric cars more attractive price-wise, as it will reduce the sticker prices that are usually higher than equivalent ICE cars.
The GV70 EV is part of Genesis’ plan to become a fully electric brand by 2030. It will put an end to new ICEs in 2025.
According to its presentation earlier this year, we are expecting several electric vehicles from Genesis, where we heard about its plans to make an electrified version of its GV70 ICE crossover that is still on sale.
Genesis’ parent company, Hyundai, has revealed it will spend $7.4 billion to develop electric vehicles in the US by 2025. According to Jose Munoz, CEO of Hyundai Motor Company North America;
“I am excited to make this announcement on behalf of the Hyundai Motor Group. This investment demonstrates our deep commitment to the US market, our dealers, and our customers. Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product lineup.”
At the same time, Hyundai hinged its future electrification plans on the US market conditions and what the federal government plans to do about incentives. That included whether it would manufacture its cars in the US or not.
However, Hyundai has apparently decided not to wait for the final outcome of the EV subsidy bill, which is making its way through Congress under President Biden’s administration. It will now commence production in the US, anyway.
The news of this change of plans came at its Asan plant in South Korea during a job security meeting with its labor union.
The decision to go ahead with production might end up paying Hyundai as the US market, one of the top EV markets globally, will soon experience a flood of EVs from different manufacturers working on their own models. Delaying the decision will give other EV makers the opportunity to hit the market first, putting Hyundai in a position where it has to play catch-up.
Even without the incentives, the US is too influential a market to ignore for automakers, and they will do anything to secure a slice of the market for themselves.
Whatever the case, Hyundai will be one of the people closely monitoring the Build Back Better Act of President Joe Biden.
Hyundai already uses the Montgomery, Alabama factory to make different Hyundai gas-powered models. But starting with the GV70 EV, Hyundai will begin the process of converting it to an EV-making facility.
The GV70 ICE version launched in the US in June and has been enjoying good sales, which is why Hyundai chose to make the electrified version its first electric model on American soil.
Also in the pipeline are more electric models cutting across several brands, including the Ioniq 5 and the Kia EV6.
President Biden, a big supporter of electric vehicles who has personally test-driven the upcoming Ford F-150 Lightning, called for $174 billion to promote the adoption of electric vehicles. He wants half of all new cars to be battery-powered by 2030.
The Hyundai group makes EVs under the Hyundai, Kia, Genesis, and Ioniq brands, among others.