Synopsis
Hyundai Motor Group is enhancing its production capabilities in the US with the upcoming inauguration of the Hyundai Motor Group Metaplant America in Georgia. The facility will boost production capacity and support the localization strategy amid evolving trade policies.Key Takeaways
- Hyundai Motor Group is expanding its US manufacturing footprint.
- The new HMGMA facility in Georgia will officially open soon.
- Production capacity is expected to increase from 300,000 to 500,000 units.
- Hyundai aims to produce 1.18 million vehicles annually in the US.
- The group sold 1.7 million vehicles in the US last year.
Seoul, March 21 (NationPress) Hyundai Motor Group is ramping up its initiatives to enhance its production presence in the United States, amidst ongoing calls from US President Donald Trump for foreign firms to establish manufacturing operations in the country to conduct business there, as noted by industry analysts on Friday.
As per industry sources, the group is set to host an official inauguration ceremony next week for the Hyundai Motor Group Metaplant America (HMGMA), its facility dedicated to the production of electric vehicles (EVs) and hybrids located in Savannah, Georgia, according to a report from Yonhap news agency.
While the 11.83 million-square-meter plant has been partially operational since late last year, it is expected to officially commence full-scale operations following the ceremony.
Currently, HMGMA operates at a limited capacity of 300,000 units annually, but Hyundai aims to increase this to 500,000 units once the US$5.54 billion facility is fully operational.
When combined with Hyundai Motor Co.'s existing plant in Alabama, which has a capacity of 330,000 units, and Kia Corp.'s 350,000-unit facility, the South Korean automotive group is poised to enhance its US production capacity to approximately 1.18 million vehicles per year.
Last year, Hyundai and Kia achieved sales of 1.7 million vehicles in the US, marking a 3.4 percent year-on-year increase, solidifying the group as the fourth-largest global automotive group in the US market.
The upcoming HMGMA ceremony coincides with global automotive groups preparing for potential reciprocal and sectoral tariffs on their exports to the US, which Trump has pledged since his election campaign.
Jose Munoz, the CEO of Hyundai Motor Co., highlighted that the decision to invest in HMGMA was made during the first Trump administration and that its localization strategy in the US market "will help mitigate the impact of any potential policy change."
"(HMGMA) is increasing production of the Ioniq 5 EV, which is already available for sale, and it is gearing up to produce the Ioniq 9 EV by the end of Q1. Preparations for hybrid production are already underway," Munoz, who assumed the role of CEO in January, stated during a company shareholders' meeting on Thursday.
The White House announced on Thursday (US time) that Hyundai Motor Group's efforts to expand its US production capacity align with a "manufacturing win" for the US, achieved through Trump's "America First" trade policy.
Reports from South Korean media suggest that Hyundai is seeking to invite Trump to the HMGMA opening ceremony, alongside key figures from the current Washington administration. The event is anticipated to be attended by Georgia Gov. Brian Kemp.
The South Korean auto giant is also partnering with American companies to create synergy in its US operations, as well as in the global market.
In September, Hyundai Motor and General Motors Co. (GM) formed a partnership aimed at joint production of passenger and commercial vehicles, as well as the development of eco-friendly energy technologies, such as electric and hydrogen.
This marked Hyundai's first comprehensive cooperation agreement with a major foreign automaker.
