Chairman Chung raises investment amount after meeting with President Biden
After meeting with U.S. President Joe Biden, Hyundai Motor Chairman Chung Eui-sun announced on May 22 that the automotive group would raise its U.S. investment by $5 billion.
Two days earlier, the Seoul-based corporation disclosed its plan to spend $5.5 billion to build a dedicated electric vehicle complex in Georgia where it would churn our eco-friendly models and batteries.
Specifically, the Georgia plant would start to roll out vehicles in 2025 with an annual capacity of 300,000 units.
In an event to announce the investment plan, Georgia Gov. Brian Kemp welcomed Hyundai’s move.
“The future of transportation is in the Peach State as we announce the largest project in our state’s history – delivering high-quality jobs on the leading edge of mobility to hardworking Georgians,” he said.
“Not only are we thrilled to welcome Hyundai to Georgia’s coastal region, but it’s incredible that within a year of Georgia’s investment in the Bryan County mega-site, we are locating a world-class project here with a company with great Georgia history.”
Chairman Chung sent a video message where he talked about the significance of the U.S. market.
“As one of the world’s most successful and advanced mobility leaders, we are incredibly proud to share our plan to open our first dedicated full EV and battery manufacturing facilities in the U.S.,” he said.
“The U.S. has always held an important place in the group’s global strategy, and we are excited to partner with the State of Georgia to achieve our shared goal of electrified mobility and sustainability in the U.S.”
On May 22, he held a one-on-one meeting with President Biden, who was in Seoul for his three-day visit to the country before leaving for Japan.
After the meeting, Chung revealed an additional $5 billion U.S. investment in such cutting-edge segments as autonomous driving, robotics, and artificial intelligence.
“By setting up the new factory, Hyundai Motor is expected to gain an additional subsidy of $5,000 for each electric car. Plus, it would also get tax benefits from the state government,” Eugene Investment & Securities analyst Lee Jae-il said.
“South Korean suppliers in the United States like Hyundai Mobis and Hanon Systems are also likely to become beneficiaries of Hyundai’s dedicated EV factory complex.”