Hyundai Said to Plan Up To 6 EVs in New $5.5 Billion Georgia Plant

First Up 05/23/22

Hyundai Said to Plan Up To 6 EVs in New $5.5 Billion Georgia Plant

Hyundai Motor Group — solidly No. 2 in the U.S. electric vehicle market in the first quarter — will plow $5.5 billion into its first dedicated EV factory in the U.S., Automotive News has learned. The plant in Ellabell, Ga., about 30 miles northwest of Savannah, Ga., is a cornerstone of Hyundai's long-term investment in electric vehicles, and would make it the first Asian automaker to commit a North American plant exclusively to EV output. According to a supply chain industry source, Hyundai is targeting the production of up to six EV models at the new plant by the end of 2028. The factory should launch with the Hyundai Ioniq 7 in 2025. The source said that the production of a Kia EV pickup could begin in the first half of 2026, followed by a Hyundai brand compact EV pickup in the second half. Genesis EV output is also planned. The Hyundai group — maker of the Hyundai, Kia and Genesis brands — has pledged $16 billion globally through 2030 for EVs. Kia Corp. has earmarked about half of its five-year, $22 billion investment budget to future projects, such as EVs. Click here for the full story.

New Car Prices Edge Higher in April, Supply Remains About the Same

Last week, a Cox Automotive analysis showed that new car prices are continuing to rise while new inventory is staying low due to ongoing supply chain issues. For April, Cox Automotive said the average cost of a new car was $45,171, and new car inventory was 1.13 million. CBT News reports non-luxury inventory was at 955,293, and luxury car inventory was at 168,872. Days-supply was estimated to be 36 at the end of April, a 40 percent drop year-over-year. Cox Automotive’s Charlie Chesbrough indicated that the semiconductor chip shortage “started disrupting vehicle production a year ago at this time” and has continued to impact the industry. He added that while the shortages have not improved much, “percentage differences for inventory and days’ supply will look less dramatic going forward from here.” Meanwhile, average prices of new cars remain high, with Cox Automotive reporting they are approximately 12 percent higher year-over-year. The average price of a luxury vehicle was $65,179 at the end of April, while non-luxury vehicle prices averaged $45,171. Click here for the full story.

Lexus UX Goes Hybrid-Only, Adds New Infotainment System for 2023

The freshening of the Lexus UX this year will see the brand's smallest crossover convert to a hybrid-only powertrain and add Lexus' new home-baked infotainment system on a larger touch screen, as well as enhanced safety features. The 2023 UX, which goes on sale this summer, will continue to be powered by a hybrid powertrain with a 2.0-liter engine mated to a continuously variable transmission, producing 181 hp. Equipped with a permanent-magnet, electric-drive motor with EV mode, the UX has an estimated mpg of 41 city/38 highway/39 combined reports Automotive News. The nonhybrid model, with a 2.0-liter inline four-cylinder engine with 169 hp, has been dropped. Inside, the UX is equipped with the new Lexus Interface infotainment system, which was designed in Texas by Toyota Connected and is expanding across the Lexus lineup. The voice-centric system is accessed via either the standard 8-inch or optional 12.3-inch touch display. Lexus Safety System+ 2.5 will come standard on the UX, with improved pre-collision system, emergency steering assist, lane-tracing assist and a new curve-speed control function that has been added to the adaptive cruise control system. Click here to learn more and to view photos.

Average Age of U.S. Cars Hits Record High Due to Tight Supplies

U.S. consumers are using their existing vehicles for longer as the inventory of new cars and light trucks remains constrained due to supply chain challenges, marking an all-time high for the average age, according to a report from S&P Global Mobility. Reuters reports the average age of light vehicles in operation (VIO) in the United States rose to 12.2 years this year, increasing by nearly two months from the prior year, the report said. The pandemic led consumers to shift from using from public transport and shared transport to personal cars, and since customers could not upgrade their vehicles, demand for used cars have accelerated and boosted the average vehicle age further, the report said. Stress on global supply chains worsened in April as COVID-19 lockdown measures in China and the war in Ukraine lengthened delivery times, and air freight costs between the United States and Asia rose, the New York Federal Reserve reported in its latest update to a worldwide index of supply problems. Click here for the full story.

Nissan to Start Selling Certified Used Cars from Other Brands

Nissan is preparing to launch a certified pre-owned program for vehicles from other brands. Through the program, vehicles not from Nissan will undergo an 84-point inspection and be sold with a 6-month / 6,000-mile limited warranty. Certified pre-owned vehicles from Nissan itself come with a 167-point inspection and a 7-year / 100,000-mile warranty. “We want to build connections with customers about the Nissan brand and the Nissan experience,” Nissan U.S. vice president of eCommerce, Dan Mohnke, reports Carscoops. “The biggest benefit for the dealer is new customers that they wouldn’t have normally seen.” Nissan isn’t the first car manufacturer to launch a certified pre-owned program for other vehicles. Executive manager at HGreg Nissan Kendall near Miami, Ryan Hall, said Nissan’s program will help its dealerships cope with low supplies of new vehicles. “I don’t think Nissan would be going down this path if new-car inventory was healthy,” Hall said. “This is about keeping people coming to the store because our new-car supply is cut in half.” Click here to learn more about Nissan’s new venture.

Around the Web

How Honda's New Wind Tunnel Makes an Indycar Difference [Automotive News] 

Volkswagen's Sexy Electric Wagon Finally Gets a Name [Carbuzz]

Kia Teases Several Sizes of Upcoming EV Commercial Vans [Car and Driver]

4 Lessons Car Dealers Can Learn from Carvana’s Missteps [CBT News]

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