Hyundai Motor Group leaders are re-evaluating whether its forthcoming $7.6 billion factory in Coastal Georgia should only have production of electric vehicles or if its manufacturing lines should incorporate hybrid cars. JosĂ© Muñoz, Hyundai president and global chief operating officer, said the company is evaluating whether or not to produce hybrid or plug-in hybrid electric vehicles at the $7.59 billion plant in addition to all-electric vehicles.Â
Hyundai Georgia hybrid production
As per José Muñoz, Hyundai Motor Group’s North American chief executive, the Korean automaker, Hyundai is considering diversifying its manufacturing offerings at its future Metaplant in response to market trends. Sales of hybrid and plug-in hybrid cars are growing significantly as some consumers have shied away from buying full EV.
“We are now getting ready for a ramp-up on electric vehicles and then we are evaluating if we need to maybe add some additional technologies into the plan depending on the market evaluation,” Muñoz said on the sidelines of the New York International Auto Show.
Hyundai Georgia hybrid production reassessment comes amid slower-than-excepted adoption of EVs, as well as the Biden administration revising emissions rules to better take into account hybrid and plug-in hybrid EVs rather than a focus on all-electric vehicles.
Hyundai is in the middle of investing $12.6 billion in Georgia for car production.
Muñoz said Hyundai remains committed to EVs but also knows hybrids and plug-in hybrid vehicles may be better for some consumers.
“Everything is on the table,” Muñoz said. “We will adjust to the market demand and, for the time being, we are on track for what the regulators are requesting.”
Revised emission rules
EV sales are growing but demand lags industry expectations. The U.S. Environmental Protection Agency, meanwhile, recently revised emission rules that are not as strict as previous draft rules. The new rules will give automakers some flexibility with regard to electrification and favor plug-in hybrids rather than just incentivizing fully electric cars.
Hyundai on Wednesday revealed a refreshed Tucson crossover that will be offered as a traditional gas engine, hybrid and plug-in hybrid electric vehicle. Plug-in hybrids offer electric-powered propulsion for short distances with a gas-powered engine for extended range.
Hyundai EV hybrid plant
This is not the first time Hyundai has considered building vehicles with internal combustion engines or hybrid powertrains at the Hyundai EV hybrid plant at Georgia. Prior to announcing Hyundai Georgia car production in 2022, its officials considered vehicles with other drivetrains being built there.
Muñoz said Hyundai, which is the second-largest seller of EVs behind Tesla, is not strategically shifting gears away from full EVs.
Hyundai car production in Georgia
Georgia has emerged as a national leader in the anticipated electrification of auto travel, with Hyundai as the state’s largest player. The company is investing $12.6 billion across the Peach State, including its Metaplant in Bryan County and a joint battery manufacturing facility with SK On in Bartow County. It’s subsidiary Kia, which currently operates Georgia’s sole auto manufacturing plant in West Point, is also incorporating EVs into its production lines.
Hyundai’s growth in Georgia
Hyundai’s Georgia Metaplant is quickly rising in Bryan County and is on track to begin production in October, more than three months ahead of schedule. The company’s supplier network has also announced several nearby projects to provide parts to the factory, which is expected to output 300,000 EVs a year in its first phase. Once fully operational, the plant will employ an estimated 8,500 workers.
Hyundai’s Georgia EV and hybrid plant
As per Hyundai’s Muñoz hybrid vehicles are getting renewed focus from consumers, especially those hesitant to fully transition to electric. But he said it’s clear from consumer demand and government regulation that internal combustion engines are not the long-term future.
“I think the PHEV is a key strategic topic for us. We’ve been one of the pioneers on PHEV and I think we want to take advantage of that,” Muñoz said. “But hybrid is very important … our hybrid production in growing. There’s a high demand for it. So you’re going to see an increase in the mix of hybrids in Hyundai as well.” “We see a very clear path to electrification,” he said. “… I don’t think hybrid is going to be the only solution. We continue to bet on both: EVs and hybrids.”
