Hyundai Motor Group, LG Energy to Build $4.3 Billion EV Battery Plant in U.S.

First Up 05/26/23

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For the Subaru Share the Love Event, Falcone Subaru donated $23,000 to the Little Red Door Cancer Agency and $22,000 to The Parks Foundation of Hendricks County. They said: “We're honored to support two hometown charities who believe in making the world a better place.” Click here to learn more.

Hyundai Motor Group, LG Energy to Build $4.3 Billion EV Battery Plant in U.S.

South Korea's Hyundai Motor Group and LG Energy Solution on Friday said they will build a $4.3 billion EV battery plant in the United States amid a push to take advantage of tax credits. Manufacturers must adhere to new U.S. sourcing requirements for EV battery components and critical minerals so that buyers of their vehicles can qualify for up to $7,500 in tax credits under the IRA. Vehicles from Hyundai and sister automaker Kia are currently not eligible, reports Reuters. Hyundai and LGES said construction of the factory in the state of Georgia will begin in the second half of 2023, with battery production starting at the end of 2025 at the earliest. It will have an annual production capacity of 30 gigawatt-hours (GWh), enough for 300,000 EVs, they said. Hyundai Motor Group, the world's third-largest automaker by vehicle sales, is building EV and battery manufacturing facilities in Bryan County in the state, where its joint factory with LGES will be based. Click here for the full story.

New Vehicle Sales Set to Rise, Used Vehicle Sales Expected to Drop in May

Sell ’em if you got ’em might be the mantra for sellers of new and used vehicles in May. New vehicle inventory levels rose last month, and sales are expected to follow suit — at double digit levels, according to analysts at Cox Automotive. The group says May’s seasonally adjusted sales rate (SAAR) will be strong on a year-over-year basis, rising 20.3 percent, but lag April’s numbers: 14.9 million versus 15.9 million. The primary driver for the strong sales results for the past two months: having more new cars, trucks, and SUVs on dealer lots. Last year at this time, there were just 1.1 million vehicles available — well below the norm. However, current levels are hovering around 1.9 million vehicles, which is an increase of 70 percent, reports The Detroit Bureau. “New-vehicle sales will show strong gains this month over last year’s levels, and on the surface, this is a bit surprising,” said Cox Automotive Senior Economist Charlie Chesbrough. “Interest rates are substantially higher than a year ago, as are vehicle prices, and yet sales will increase year-over-year. Click here for the full story.

Volkswagen's Pablo Di Si: Time to Get ‘Back to Basics'

Volkswagen Group of America CEO Pablo Di Si has officially been on the job only since September, when his predecessor, Scott Keogh, moved over to develop Scout Motors. The Argentinian previously worked in the U.S. for VW but had been running the brand's operations in South America when he got the call to move back here. The 53-year-old executive sees great growth potential for VW in the U.S. and believes that its electric vehicles will help the company increase its market share in what is becoming one of the German automaker's most important markets. Di Si believes it is important that VW's North American region carve out its own identity and make its own market-based decisions. He's already taking steps to speed up VW's time to market and make sure that the products sold in North America match consumer interests here. Di Si spoke with Automotive News Staff Reporter Larry P. Vellequette this month. Click here to read the full interview.

Your Next Electric Vehicle Could Be Made in China

There is a good chance that your next electric vehicle could be made in China—especially if you live outside the U.S., which is busy erecting barriers to foreign-made EVs, and Chinese batteries in particular. China overtook Japan as the largest auto exporter in the world last quarter, reports The Wall Street Journal. Surging exports to Russia gave the country’s car exports a big bump. But the strength of China’s electric vehicle ecosystem is also an important factor driving the trend. China exported 1.07 million vehicles in the first quarter of this year, a 58 percent increase from a year earlier, according to official figures. In comparison, Japan shipped 950,000 vehicles abroad during the quarter, according to the Japan Automobile Manufacturers Association. Russia accounted for a significant part of the surge. Sanctions on Russia — which cut the country off from many Western goods — left a big hole to fill, especially for gas-powered vehicles. Vehicles and auto part exports from China to Russia more than tripled year-over-year in the first four months of 2023 to $6.1 billion, according to official Chinese statistics. Click here for the full story.

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