Hyundai Motor Group will invest $7.4 billion in American manufacturing over the next four years. The investment is intended to expand its manufacturing footprint in the U.S. Specifically, it will help supply Hyundai and Kia’s electric ambitions. The company plans to use the money to produce a suite of electric vehicles for the US market.
“One key element of Kia’s transformation is transitioning from internal combustion engine to electrification,” says Sean Yoon, President and CEO of Kia North America. “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 currently operates a single factory in the U.S. located in Montgomery, Alabama while Kia operates a single factory in West Point, Georgia. It also operates a facility in Mexico. Guidehouse Insights principal analyst Sam Abuelsamid suggests that due to the timing of the investments, it seems likely that Hyundai will look to boost production at both the Alabama and Georgia facilities. He suggested that the investment could also include “one additional plant dedicated to EV production.”