Hyundai’s new Georgia Megaplant opens as U.S. tariffs loom

Hyundai Motor Group $HYMTF ( ▼ 0.88% ) is widening the scope of its manufacturing footprint in the U.S. as the industry braces for the 25% auto tariffs scheduled to go into effect on April 3. 

The details: At a celebration last Wednesday for the company’s new Georgia EV facility—the Hyundai Motor Group Metaplant America (HMGMA)—Hyundai Motor Group Executive Chairman Euisun Chung spoke about the South Korean automaker’s plans to expand production at the 3,000-acre facility.    

• Vehicle capacity will be increased from 300,000 vehicles annually to 500,000 per year, an increase of 200,000.  

• The expansion would likely include hiring more workers at the facility, which currently employs 1,200 people. 

• Hyundai currently produces two electric SUVs at the plant, including the Ioniq 5 and the larger Ioniq 9 scheduled for release this spring. 

Why it matters: Hyundai’s decision to prioritize local production wasn’t made overnight, but the timing couldn’t be better. As tariffs become a fixed cost of doing business, the company’s early bets on U.S. manufacturing offer some insulation.    

Between the lines: The company’s production expansion at the Georgia facility is part of a $21 billion investment plan over the next three years announced at the White House with President Trump last Monday.

• $9 billion of the investment will go towards expanding U.S. automobile production to 1.2 million units annually, according to Hyundai.

• $6 billion will be allocated to enhance parts, logistics, and steel business, increasing the localization of auto parts and strengthening supply chains.

• Another $6 billion will go towards expanding the automaker’s future industries and strengthening external partnerships and energy infrastructure, including EV charging. 

Bottomline: Hyundai’s U.S. production strategy—coupled with the company’s sales success across its multiple brands (Hyundai, Kia, Genesis) in the states—better positions the company than many of its competitors in the U.S., enabling Hyundai to continue to grow its market share.

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