(From The Korea Herald)
Hyundai Motor affirms EV production in US but why the delay?
Biden administration’s selective incentives for US makers, battery procurement issue hamper Korean automaker’s planned EV production there
Published : Nov 23, 2021 - 15:03 Updated : Nov 23, 2021 - 15:05
"...Washington has also been pushing to finalize a plan to grant a $4,500 tax credit for EVs assembled by only American companies with union labor there, not with a foreign automaker.Full story HERE.
But this has put a halt on the Korean carmaker’s plan to produce EVs in its manufacturing plants in Alabama and Georgia.
The automaker’s North American chief Jose Munoz said in an interview with a US media outlet last week that the proposed $4,500 incentive advantage is a huge issue to consider.
Saying that it is “questionable” whether to proceed with investment for EV production in the US, Munoz said the subsidy for US EV makers with registered labor union creates disparity for foreign automakers.
Currently, the South Korean carmaker’s Alabama and Georgia factories are operated based on a non-union workforce. Only companies like GM, Ford and Stellantis have labor unions approved by the country’s United Auto Workers.
Local industry believes that Hyundai Motor will be put up against unfair competition when Biden administration executes the subsidy scheme.
“Non-US companies are often put on a different starting line in spite of their huge investment in the US, as well as their contribution to a job creation there,” said an industry insider, adding that it is inevitable for foreign companies to adjust their production and investment plan to save costs when it comes to business expansion in the US.