SEOUL/DETROIT : After grabbing the No. 2 spot in the U.S. electric vehicle market with stylish, long-range models, Hyundai Motor and Kia are the automakers with the most to lose from new rules that halt subsidies for EVs made outside North America.These two companies, which make the popular Ioniq 5 and EV
SEOUL/DETROIT : After grabbing the No. 2 spot in the U.S. electric vehicle market with stylish, long-range models, Hyundai Motor and Kia are the automakers with the most to lose from new rules that halt subsidies for EVs made outside North America.
Only about 20 EVs qualify for subsidies under the new rules, among them models from Ford and BMW, and starting next year, GM and Tesla Inc. The rules also specify requirements for EV battery materials and parts sourcing from 2023. Graphic: Battery-powered U.S. EV sales - https://graphics.reuters.com/HYUNDAIMOTOR-ELECTRIC/byprjgogqpe/chart.png
An official at a large Hyundai supplier who has spoken to senior officials at the company told Reuters that the automaker was caught off guard by the law. A senior government official said on Tuesday Seoul has asked Washington to postpone the new rules until the completion of the Georgia factory in 2025. South Korea has said the new law may violate treaties such as the U.S.-South Korea free trade agreement.
After Biden signed the Act on Aug. 16, shares in Hyundai and Kia fell some 4 per cent each. They have since recovered.