Hyundai To Speed Up EV Construction In U.S. To Take Advantage Of “Inflation Reduction Act” Subsidies

The printed power of great government incentives strikes again…

First, it was Ford and GM raising the prices of their EVs commensurate with the subsidy the new “Inflation Reduction Act” was offering potential buyers.

Now it’s Hyundai Motor, moving quickly to try and finish its EV plant in Georgia this year so it can also have a spot at the government feeding trough subsidy table.

The automaker is reportedly looking to speed up construction of its forthcoming facilities in Georgia so that it can start production in the second half of 2024, Yonhap and Bloomberg reported this week. 

The company was originally slated to begin production in the first half of 2025 and not start construction until January 2023. 

But the changes are afoot because the “US’ Inflation Reduction Act. excludes EVs built outside US from tax breaks”, Bloomberg reported this week. 

Recall, less than a week ago we noted that Ford was hiking the price of its F-150 by about the exact same amount as would be received by EV subsidies included in the act. 

Ford announced last week that it is raising the price of its high end electric F-150 by up to $8,500; an amount that adds another $1,000 onto the new $7,500 EV subsidy that was including in President Biden’s “Inflation Reduction Act”. Base models are seeing their prices hiked by $7,000. 

Biden signed his “flagship” act last Tuesday afternoon. 

One more time, so we’re clear: a $7,500 taxpayer subsidy included in an act named after reducing inflation appears to have spurred an even larger price hike on electric pickup trucks. 

The electric F-150 had previously been listed for $40,000 for its base version. Now, it is priced at $47,000, according to CNN. The better equipped versions of the vehicles have similar price hikes, up to $8,500.