Hyundai Motor Group to Invest $7.4 Billion In the U.S. by 2025

Rhea-AI Summary

Hyundai Motor Group announced a $7.4 billion investment in the U.S. by 2025 aimed at enhancing EV production, improving facilities, and advancing smart mobility solutions. This initiative will bolster competitiveness in future mobility technologies, particularly in electrification and hydrogen energy. Hyundai and Kia plan to expand their EV footprint and introduce American-made electric vehicles starting next year. The company is also committed to developing the hydrogen ecosystem and launching a subsidiary focused on Urban Air Mobility. Collaborations with local partners will support fuel cell technology innovation.

Positive

• Investment of $7.4 billion in U.S. by 2025 boosts EV production and facilities.
• Introduction of American-made electric vehicles starting next year.
• Expansion of hydrogen ecosystem enhances future mobility technologies.
• Collaboration with local partners to support fuel cell technology innovation.

Negative

• None.

FOUNTAIN VALLEY and IRVINE, Calif., May 13, 2021 /PRNewswire/ --Today, Hyundai Motor Group (HMG), which includes Hyundai Motor Company and Kia Corporation, announced its plan to invest $7.4 billion in the U.S. by 2025 to produce future EVs, enhance production facilities and further its investments in smart mobility solutions.

HMG's investment will enhance overall product competitiveness by prioritizing future mobility technologies, including electrification and hydrogen energy.

José Muñoz, Hyundai Motor Company's Global Chief Operating Officer and President and CEO of Hyundai Motor North America said, "I am excited to make this announcement on behalf of the Hyundai Motor Group. This investment demonstrates our deep commitment to the U.S. market, our dealers and 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 line-up."

Sean Yoon, President and CEO of Kia North America added, "One key element of Kia's transformation is transitioning from internal combustion engine to electrification. With our strategic investment in the United States to produce EV models, we are making huge strides to lead the EV market but also increase our contribution to the economies where we do business."

Hyundai and Kia will invest in growing its EV manufacturing footprint to scale production and satisfy U.S. market demands. Hyundai Motor will offer a suite of American-made electric vehicles to U.S. consumers starting next year.

Hyundai and Kia will monitor the market conditions and U.S. government EV policy to finalize its plan to enhance its U.S. production facilities and gradually expand its local EV production.

Hyundai Motor Group will expand the U.S. hydrogen ecosystem in collaboration with local private and public partners

Hyundai Motor Group looks forward to working with the U.S. government and other business partners to expand the U.S. hydrogen energy ecosystem. The Group is committed to fostering a hydrogen society to create new business opportunities for a sustainable future.

Hyundai Motor Group signed an MOU with the U.S. Department of Energy in February 2020 to cooperate in hydrogen fuel cell technology innovation and global expansion. This included the installation of a hydrogen refueling station and providing NEXO SUVs.

Later this year, Hyundai will proceed on demonstration project in preparation for commercialization of fuel cell electric trucks. Hyundai Motor will also work with local partners to conduct a hydrogen refueling demonstration project for fuel cell electric trucks. and provide logistics between port and inland warehouses by utilizing fuel cell electric trucks.

Hyundai have previously made an agreement with Cummins Inc., an U.S. based company which specializes in advanced powertrain, to accelerate deployment of fuel cell electric systems in the U.S. market.

HMG to invest in Urban Air Mobility (UAM), robotics and autonomous technologies

Hyundai Motor Group will launch a subsidiary in Washington, D.C. to spearhead the Group's UAM businesses. The subsidiary will focus on creating an UAM ecosystem and revolutionizing the mobility experience.

The Group also will firmly establish its presence in the robotics field through Boston Dynamics. The Group announced last year that it agreed to acquire a controlling 80 percent interest in Boston Dynamics in a deal that values the mobile robot firm at $1.1 billion.

In addition, Hyundai Motor Group has created the joint venture, Motional, in partnership with the leading U.S. mobility technology firm Aptiv. Focused on commercializing driverless technology, Motional has obtained the industry's first driverless license in the state of Nevada and plans to commercialize robotaxi service in 2023 along with its partner Lyft. Motional has started testing Hyundai's all-electric IONIQ 5 equipped with advanced autonomous driving technology on public roads.

Together, the Hyundai Motor Group and Motional will enhance its autonomous driving technology in preparation for Lyft's robotaxi launch in 2023. 

About Hyundai Motor Group
Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT, and service.
With about 250,000 employees worldwide, the Group's mobility brands include Hyundai, Kia, and Genesis. Armed with creative thinking, cooperative communication and the will to take on any challenges, we strive to create a better future for all.

Hyundai Motor America
At Hyundai Motor America, we believe everyone deserves better. From the way we design and build our cars to the way we treat the people who drive them, making things better is at the heart of everything we do. Hyundai's technology-rich product lineup of cars, SUVs and alternative-powered electric and fuel cell vehicles is backed by Hyundai Assurance—our promise to create a better experience for customers. Hyundai vehicles are sold and serviced through more than 820 dealerships nationwide and nearly half of those sold in the U.S. are built at Hyundai Motor Manufacturing Alabama. Hyundai Motor America is headquartered in Fountain Valley, California, and is a subsidiary of Hyundai Motor Company of Korea.

Kia Motors America
Headquartered in Irvine, California, Kia Motors America continues to top quality surveys and is recognized as one of the 100 Best Global Brands. Kia serves as the "Official Automotive Partner" of the NBA and offers a complete range of vehicles sold through a network of more than 750 dealers in the U.S., including cars and SUVs proudly assembled in America.

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SOURCE Hyundai Motor Group

FAQ

What is Hyundai Motor Group's investment plan in the U.S. for 2025?

Hyundai Motor Group plans to invest $7.4 billion in the U.S. by 2025 to enhance EV production, improve facilities, and invest in smart mobility solutions.

What new products will Hyundai Motor Group introduce in the U.S. market?

Hyundai will offer a suite of American-made electric vehicles starting in 2022 as part of its investment in the U.S.

How will Hyundai Motor Group contribute to the hydrogen energy sector?

Hyundai aims to expand the U.S. hydrogen ecosystem by collaborating with local partners and government entities to foster a hydrogen society.

What is the focus of Hyundai's subsidiary to be launched in Washington, D.C.?

The subsidiary will focus on developing Urban Air Mobility (UAM) technologies and creating a UAM ecosystem.

When will Motional commercialize its robotaxi service?

Motional plans to launch its robotaxi service in 2023 in collaboration with Lyft.