HYUNDAI MAY RETHINK INVESTMENT DUE TO IRA

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Hyundai Motor has pointed at the possibility of re-considering its plans to invest in the U.S. if the Inflation Reduction Act continues to hurt its growth. The IRA poses a serious threat to korean automakers including Hyundai Motor as they're are no longer eligible for tax subsidies in America under the new legislation. It was once again confirmed Hyundai Motor urged measures to ensure a fair competition by delaying the implementation of the changed tax subsidies, as they're already in the process of building an EV factory in Georgia.

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Hyundai Motor's Vice President of Government Affairs Robert Hood says the automaker might re-consider its plans to invest in the U.S. if the Inflation Reduction Act continues to hurt its growth. At a seminar held by the Wilson Center via video conferencing, Hood was asked if Hyundai Motor could cut or even scrap its investment in the Georgia plant. He answered that the situation must be closely watched before the company's decision.

[Soundbite] Robert Hood(Vice President of gov’t affairs, Hyundai Motor Co.) : "If this continues to potentially hurt our growth, I think we'll have no choice but to really reassess where we go. We don't want to do that. The US is so important to us as a company."

Hyundai's electric vehicles used to be the second best-selling in the U.S. but with the implementation of the Inflation Reduction Act their market share plunged, as only EVs assembled in the U.S. are eligible for tax subsidies. If the IRA moves forward as first proposed, achieving Hyundai's employment and manufacturing targets in the U.S. would become difficult, and it'll have to pay a penalty to the state of Georgia. Hood is urging measures to ensure a fair competition by delaying the implementation of the changed tax subsidies.

[Soundbite] Robert Hood(Vice President of gov’t affairs, Hyundai Motor Co.) : "We just want to say, give us a fair opportunity over the next couple years. Once that plant comes on line, we'll be assembling cars and I would say America."

The South Korean government is focusing on persuading the U.S. Congress to amend the law and the Treasury Department to include an alternative on inequality in the regulations. However, the situation appears to be quite tough, as the U.S. ruling Democratic Party is also demanding heightened implementation of tax subsidies for electric cars.