Kia and Hyundai are pouring billions of dollars into the United States, where they aim to invest more in futuristic technologies and start developing electric cars.
Both South Korean companies declared Thursday that they would invest $7.5 billion in the U.S. over the next four years.
The financing will help the carmakers gradually expand manufacturing, though they stated in a statement that exact plans have yet to be decided. Hyundai plans to begin electric vehicle production in the United States next year.
The move strengthens the automaker’s presence stateside, where it already has a surging, $1.9 billion factory in Alabama that produces nearly half of its cars sold domestically.
President Joe Biden has already said that he wants America to be the global leaders in Electric-Vehicle manufacturing, intending to invest about $175 billion in the sector. He has also urged consumers to buy US-made electric cars.
Hyundai and Kia tweeted on Thursday that they would “observe the market conditions and U.S. government E.V. guidelines to finalize” plans on expanding their U.S. facilities.
“One major element of Kia’s modification is transitioning from combustion engine to electrification,” CEO of Kia North America, Sean Yoon, said in a statement.
Hyundai also wants to gather more innovation around areas such as autonomous driving, flying cars and robotics. It laid out policies Thursday to help “ensure future competitiveness,” such as overseeing initiatives around aerial vehicles to set up a new subsidiary in Washington.
The South Korean automaker also bought majority shares in U.S. robotics company Boston Dynamics last November, saying it wanted the two firms to develop great ideas of “future mobility.”
Other automobile companies have taken a similar route. Recently, Toyota also released Woven Planet, a unit committed to investing in aspiring projects involving smart cities, automated driving and robots.
Leave a Reply