Hyundai Motor Group details how it will spend $7.4 billion in the U.S. by 2025
Spending $7.4 billion is no small task. A new release from the Korean automaker details just how the company is going to spend the money by 2025. Hyundai Motor Group (HMG) includes the Kia, Hyundai, Ioniq, and Genesis brands.
HMG intends to make the spend to "enhance overall product competitiveness" in the area of future mobility technologies including electrification and hydrogen. Hyundai and Kia will invest in growing its electric vehicle (EV) manufacturing footprint to scale and production and satisfy U.S. market demands. Market conditions and U.S. government EV police will dictate what next steps are taken.
Hyundai Motor will offer a suite of American-made electric vehicles to U.S. consumers starting next year. This includes the Kia EV6 and Hyundai Ioniq 5. Additional Kia, Hyundai, Genesis, and Ioniq models are in the works with debuts coming in the near future.
"One key element of Kia's transformation is transitioning from internal combustion engine to electrification. 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," said Sean Yoon, President and CEO of Kia North America.
HMG also intends to expand the U.S. hydrogen ecosystem in collaboration with local private and public partners. There are numerous governmental and filling station hurdles that must be overcome before widespread hydrogen sees usage in the U.S. HMG is committed to the natural fuel, which is used to power electric motors in fuel cell electric vehicles (FCEVs).
HMG is committed to working with the government and other business partners to expand the U.S. hydrogen energy ecosystem. New business opportunities are likely to emerge from that. Hyundai Motor Group signed a memorandum of understanding with the U.S. Department of Energy in February 2020 to cooperate in hydrogen fuel cell technology innovation and global expansion.
Later this year, Hyundai will demonstrate its fuel cell electric trucks ahead of their commercialization. Hyundai previously made an agreement with Cummins Inc., an U.S. based company which specializes in advanced powertrains, to accelerate deployment of fuel cell electric systems in the U.S. market.
Additionally, HMG will invest in Urban Air Mobility (UAM), robotics, and autonomous technologies. The company, along with SoftBank Group Corp. has agreed to a deal that would have HMG gain a controlling interest in Boston Dynamics, a robotics company perhaps best known for making dog-like robots that monitor Singapore's parks and help Ford map out its factories.
HMG will launch a subsidiary in Washington D.C. to spearhead the Group's UAM businesses and work to create an ecosystem that supports what HMG is calling a "revolution of the mobility experience".
HMG and Aptiv, a U.S. mobility technology firm has created Motional, a joint venture aimed at commercializing driverless cars. The new company has already obtained the industry's first driverless license in the state of Nevada and plans to commercialize robotaxi service in 2023 along with its partner Lyft. Motional has started testing the new Ioniq 5 equipped with advanced autonomous driving technology on public roads.
"I am excited to make this announcement on behalf of the Hyundai Motor Group. This investment demonstrates our deep commitment to the U.S. market, our dealers and customers. Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up," said José Muñoz, Hyundai Motor Company's Global Chief Operating Officer and President and CEO of Hyundai Motor North America.