U.S. Presidential Election: Trump’s Chances of Electing Increase
Thanks to this, the electric vehicle industry is in crisis
But Is Hyundai Smiling?
Trump has strongly criticized the current Biden administration’s green energy policy, labeling it a “fraud.” His approval ratings have surged since an incident where he was shot at during a public speaking event. Consequently, the auto industry is bracing for a potential contraction in the EV market.
This situation is exacerbated by consumer hesitation about purchasing electric cars. The possibility of Trump’s election leading to diminished policy support for EVs is causing automakers to deeply consider their future strategic directions. Experts, industry insiders, and consumers anticipate that EV policies could face significant setbacks.
Ford Sniffs Opportunity and Focuses on Internal Combustion Engine Vehicles
Ford was the first to react as the likelihood of Trump’s victory increased. On the day Trump gave his acceptance speech, Ford announced plans to begin production of a full-size pickup truck with an internal combustion engine, the Super Duty, at its Oakville, Ontario plant in Canada. Meanwhile, production of a large electric SUV has been deferred to 2027.
Currently, the Super Duty is being actively produced at Ford’s factories in Kentucky and Ohio. Ford CEO Jim Farley stated, “Even with our existing production facilities operating at full capacity, there are limits to meeting the demand for the Super Duty.” He also announced that Ford would invest $3 billion to expand Super Duty production.
Hyundai, which is quick-witted, plans to formulate and implement flexible strategies
South Koreans are known for their keen sense of awareness, and Hyundai is no exception. They watched Trump closely and were prepared to get out flexibly. Hyundai is now the second-largest EV seller in the U.S., behind Tesla. Hyundai, which has recently risen sharply in the U.S. sales rankings, plans to quickly overcome the shrinking EV market crisis and not let up on its advance.
The new Georgia plant, with an annual capacity of 300,000 vehicles and scheduled to be operational in the second half of 2024, is Hyundai’s U.S. EV production base. However, depending on the situation, Hyundai has changed its stance. They decided to produce hybrids at its Georgia plant. Unlike when Trump first took office eight years ago, Hyundai prepared a response plan in advance: the hybrid vehicle.
Hyundai Plans to Expand Local Production
There is no problem with the outcome of the U.S. presidential election
The industry assesses that Hyundai Motor Group’s strength is flexible production. Even if Trump is re-elected and deals a blow to EVs, one of Hyundai’s strengths, the analysis, is that Hyundai will flexibly devise strategies to suit the market. The new plant’s plan to produce hybrid vehicles is a pretty sharp and clever strategy because hybrid cars are very popular in the U.S.
Santa Fe is the only hybrid vehicle produced by Hyundai Motor Group in the U.S. The remaining hybrid models in the U.S., including the Hyundai Tucson and Kia Sportage, are all made in South Korea and exported to the U.S. U.Sperts have analyzed that the plan to increase the proportion of hybrid model production in EV factories is sufficient as a response strategy.
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