Kia parent Hyundai mulls making hybrids at EV plant

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In recent years, Georgia has made efforts to become a hub for electric vehicles. Now, with the growth of EV sales falling short of expectations, the process has new wrinkles.

Think about it You parent Hyundai, which is developing a multibillion-dollar EV “metaplant” in the state, which is expected to start in October. It is now considering making hybrid cars there, due to the high demand for cars. This is according to Jose Munoz, President of North America and Global CEO, who spoke to CNBC this week.

“Now we are planning to develop electric vehicles, and then we will evaluate whether we want to add other technologies to the system depending on the market conditions,” said Munoz.

He also spoke of the “high demand” for hybrid vehicles, adding, “You’re seeing an increase in the Hyundai hybrid.”

A South Korean giant—worldwide the third largest car manufacturer and volume—they still don’t have power over EVs, they’re just following them Tesla in the US market for them.

EV is set to decline

Meanwhile, Tesla Rivian Rivian announced this month that it is stop construction of a $5 billion EV manufacturing facility in Georgia. The move came amid doubts about its viability, by Tesla CEO Elon Musk meaning last month that Rivian will go bankrupt in six quarters without significantly reducing the price.

When Rivian unveiled the upcoming models, it said they will be manufactured over the next few years at its existing factory in Illinois, while the Georgia facility will be on hold until it shows off. To move he provoked anger among Georgia lawmakers, and one called it “absolutely irresponsible.”

Some automakers are also scaling back their EV plans based on lower-than-expected growth rates. Ford and GM, for example, have he returned their plans to produce EVs while driving more towards hybrids.

One problem with EVs is that even when adopters have already purchased their vehicles, regular car buyers can be turned off by the various concerns, high prices, and poor sales associated with them. This could change the way EVs become more efficient and affordable models reach consumers.

At this time ToyotaFord, and other major automakers are enjoying themselves increased sales of hybrid vehicles, which many drivers see as a more efficient option than EVs.

Hyundai’s review of its Georgia plant comes as the Biden administration revises emissions regulations this month in a way that better accounts for hybrids.

“Everything is on the table,” Munoz said. “We will adapt to what the market needs and, at this point, we are in line with what the regulators want.”

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