Hyundai and Kia Spend $7 Billion to Push Electric Cars

The South Korean automaker giants Hyundai and Kia are reportedly planning to inject billions to push electric cars manufacture and development. The companies will be focusing their investment in the United States.

On Thursday, CNN reported Hyundai and Kia’s plans to invest around $7.4 billion in the United States for the next four years. The fund will be allocated for gradual expansion in electric cars manufacture. However, the companies further elaborated that no plan has been finalized in the moment.

Hyundai, though, aims to commence with electric vehicle production in the United States starting next year. This strategy will further strengthen the automakers’ presence. Currently, Hyundai Motor Group owns a $1.8 billion factory in Alabama which has sold nearly half of its cars domestically.

Hyundai Motor Group, electric cars, and Joe Biden

Hyundai Motor Group’s strategy is in line with US President Joe Biden‘s. Previously, Biden voiced his plan to make America the world leader in EV manufacturing. Along with the statement, Biden proposed $174 billion investment in the sector. Additionally, Biden pushed to incentivize consumers to buy US-made electric cars, CNN notes.

Hyundai and Kia stated that they would “monitor the market conditions and US government EV policy to finalize” plans on upgrading their US facilities as well.

CEO of Kia North America, Sean Yoon, said in a statement, “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 is not going easy with its innovations. In the future, the South Korean automaker foresees flying cars, autonomous driving and robotics coming from the company. This, according to the company, is to help “ensure future competitiveness”. Some of the aforementioned technologies have already publicized by Hyundai last year. Among them is the flying taxi concept with Uber. Hyundai further ensures that the recent acquisition of Boston Dynamics can help both companies come up with new ideas of “future mobility.”