Hyundai Motors announced plans to invest over $51 billion to improve its position in the South Korean EV industry. It declared on Wednesday that it will invest 68 trillion won ($51 billion) over three years in South Korea to increase the manufacturing of electric vehicles, doubling down at a time when other well-known automakers are cutting back. In addition, 80,000 more workers will be hired separately.
Additionally, new EV production lines and research and development facilities will be built with more than half of the investment—roughly 35.5 trillion won.
Hyundai's Investment Plans and More EV Strategy
At the New York auto show, Jose Munoz, the global CEO of Hyundai, stated, "We are doubling down on electrification and We're very committed to the United States market."
Munoz said Hyundai also sees a slowdown in the pace of electrification but added the Korean automaker will maintain its plans but remain flexible, including the rollout of plug-in hybrid vehicles. "The only difference is we still see EVs in the long run as the way we are going to see the biggest growth," he said. Hyundai expects to begin producing EVs in Georgia in October to allow them to qualify for $7,500 tax credits under the Inflation Reduction Act - ahead of its initial schedule, Munoz said. Hyundai, which saw U.S. EV sales double last year, will soon announce what EVs it will build in Georgia, he added.
Other EV company's plans
In 2021, General Motors (GM.N) said that it would prioritize speeding electric vehicle (EV) adoption over short-term financial gains, with over $35 billion to be allocated to EV programs through 2025. The American automaker, however, cut its anticipated EV output and postponed the construction of an electric truck factory last year.
After outlining $30 billion in EV spending through 2030 three years ago, Ford (F.N), opened a new tab, has since cut manufacturing plans for its electric truck, the F-150 Lightning, and moved workers to construct more gasoline-powered Bronco SUVs. In light of this, Ford is "right-sizing the capacity and investments we are putting into EVs," as stated by Chief Financial Officer John Lawler on Tuesday.
Although Toyota (7203.T), opens a new tab, the largest carmaker in the world based on sales, is expanding the number of electric vehicles in its lineup, its focus is mostly on growing sales of gas-electric hybrids. That decision has been well received by investors, as Toyota shares have increased by about 50% this year.
Also, GM announced last year that it will repurchase $10 billion worth of shares, and CEO Mary Barra has hinted at the possibility of additional buybacks. In addition, Stellantis (STLAM.MI), opened a new tab and has pledged to enhance cash returns to shareholders as opposed to growing its EV investments.
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