Kia Wants to Move EV Manufacturing to the United States
Kia Wants to Move EV Manufacturing to the United States
Automakers have been hurrying to get plants up and running in North America since the Inflation Reduction Act was unveiled. This is due to America's present reliance on China for lithium-ion battery manufacture. Automakers that aren't currently building EVs locally will be forced to do so in order to continue taking advantage of federal tax benefits. Already, Magna Steyr, an assembler for Mercedes-Benz, BMW, and Toyota, is looking for a facility in the United States.
According to the latest reports, Kia, which currently manufactures popular models like as the Telluride in the United States, is considering to relocate manufacturing of its EV6 electric crossover here as well.
Image Credit : KIA
The Kia EV6 is still a relatively new arrival, and it is being built at the Hwasung Plant in South Korea. Due to its overseas manufacturing, it would be ineligible for EV tax credits. Kia does not want to give competitors an edge, which is why, according to Reuters, the manufacturer will begin manufacturing EVs in the United States in 2024. The publication claimed information from an undisclosed car industry source from the South Korean daily Maeil Business and the TV station SBS.
Naturally, Kia's intentions frequently coincide with those of its parent company, Hyundai. Hyundai, like Kia, risks losing consumers if it does not shift manufacture of EVs like the Ioniq 5 to the United States, something it is already working on.
Image Credit : KIA
Hyundai Motor Group made a $5.5 billion commitment to build a new factory in Georgia, and we recently learnt that Hyundai is attempting to start production a year sooner, in 2024. This factory will complement the brand's present Alabama location.
The sooner Kia can establish an EV manufacturing in America, the better. The EV6 is currently on the market, with an increasing lineup that includes the high-performance EV6 GT, and the EV9 is set to arrive in 2023. This three-row SUV will be a major seller in the United States.
Image Credit : KIA
The Volkswagen ID.4, an electric crossover that is already manufactured in Chattanooga, Tennessee, is one of the EV6's competitors. It's easy to see a potential customer who is undecided between these two automobiles being influenced by the one that has the tax credit.
The new EV tax credit regulations will eliminate the 200,000 car threshold, which is great news for companies like Tesla, which has long sold more EVs than that. As of now, just 12 EVs qualify for the new tax credit. The objective for automakers like Kia over the next year or two is to be on that list as soon as feasible.
Image Credit : KIA
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