The Atlanta Journal-Constitution: Kevin Ketels on Hyundai EV plant
Hyundai Motor Group’s plans to break ground on a new electric vehicle near the Georgia coast have been complicated by a sprawling climate law signed last month by President Joe Biden, which was indented, in part, to spur more domestic production of EVs. Before the law was signed, EVs built by Hyundai Motor brands Hyundai, Kia and Genesis qualified for tax credits of as much as $7,500, and Biden hailed executives of the South Korean conglomerate for choosing a site in Bryan County for a future $5.5 billion EV factory. But once Biden signed the legislation into law, EVs like the Hyundai Ioniq 5 and Kia EV6 that are assembled overseas today no longer qualify for a $7,500 price reduction like those from U.S. automotive manufacturers, automotive experts say. In the long run, the Biden administration expects the tax credits will boost American manufacturing, and the future EVs Hyundai builds in Georgia will qualify for the credits. In the near term, the changes could hurt sales for brands like Hyundai and Kia, which weren’t expecting to lose the current credits before ramping up U.S. production. Kevin Ketels, an assistant professor of global supply chain management at Wayne State University, said that with few models qualifying for the credits anyway, he doesn’t think Hyundai will see its market share evaporate. “I think most automakers are in the same boat,” Ketels said. “There’s a lot of opportunity and there’s a runway in order to grab that market share, and I think they (Hyundai) would be better served by aggressively moving forward.”
