Hyundai Motor: "If IRA Impact Is Significant, Economic Feasibility of Georgia Plant May Be Questioned"

"Give Us a Fair Chance to Compete"
Request to Defer IRA Tax Credit Provision for 3 Years

[Asia Economy Reporter Kiho Sung] A senior Hyundai Motor official stated that if the damage caused to the company by the U.S. Inflation Reduction Act (IRA), which excludes Korean electric vehicles from subsidy eligibility, grows larger, the economic feasibility of investing in the electric vehicle plant in Georgia, USA, may need to be reconsidered. The official called for a fair opportunity to compete.

Robert Hood, Vice President in charge of government affairs at Hyundai Motor, attended a webinar hosted by the Woodrow Wilson Center on the 15th (local time) and responded to the question, "Is there a possibility that Hyundai might cancel or reduce its investment in the Georgia electric vehicle plant due to the IRA?" by saying, "It is an economic decision that our company must continuously monitor."

He emphasized that the plant’s operating rate can only be maintained once completed if electric vehicle sales and market share in the U.S. continue to increase, stating, "If sales do not start to grow, we will have no choice but to seriously question whether the plant is economically viable."

Vice President Hood stressed that in exchange for receiving incentives from Georgia, where the plant is located, penalties will be imposed if employment and production targets are not met. He said, "If we continue to suffer damage to our growth due to the IRA, we will have no choice but to seriously evaluate where we should go."

He mentioned that he has met with several senior U.S. administration officials and congressional members to discuss solutions, adding, "They are very sympathetic to our difficulties." He continued, "We have already held a groundbreaking ceremony and completed site preparation, among other investment activities," and said, "Our request is that we not be penalized simply for making the investments that the U.S. wanted."

He also requested time to adapt to the new IRA regulations, asking, "Please give us a fair chance to compete over the coming years."

This content was produced with the assistance of AI translation services.