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Can you provide more details on how much investment Hyundai Motor Group will allocate towards producing hybrid cars in their EV and battery manufacturing facilities in Georgia? And why did the group choose to produce hybrids instead of only electric vehicles?
Answer:
Hyundai Motor Group announced in May 2021 that it would invest $12.6 billion for new dedicated EV and battery manufacturing facilities in Georgia, USA. This investment is the group’s largest outside of South Korea. During a business conference hosted by the Financial Times in May 2022, Hyundai Motor’s global Chief Operating Officer, Jose Munoz, revealed that the group plans to utilize some of this investment to produce hybrid cars at its EV plant in Georgia, rather than solely focusing on electric vehicles. Munoz stated that the decision to produce hybrids was made because now is a crucial point where automakers must decide whether to go fully electric or opt for another solution besides electric vehicles. He further explained that while he believes the group can manage the current investment for hybrids, it is already quite substantial. This move follows the announcement made by Hyundai last month, that it intends to add equipment to manufacture hybrid vehicles at the Georgia plant, which is scheduled to commence operations in the second half of 2022. The increasing demand for hybrid vehicles, particularly in the US, is also driving this decision. In the first quarter of 2022, Hyundai’s sales of hybrid vehicles rose by 17% globally, indicating a growing preference for these types of vehicles among consumers who find them more affordable than pure electric cars.
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