The South Korean automobile industry, which has been hit by the “inflation control law,” is said to have been overwhelmed by a feeling of despondency beyond perplexity. South Korean companies continue to make large-scale investments in the United States, such as Hyundai Motor Group’s plan to invest 10.5 billion dollars (approximately 1.44 trillion yen) in the United States in May this year in conjunction with President Biden’s visit to South Korea. is not considered at all.
On the 10th, the Korea Automobile Industry Association told the U.S. Congress, “The provisions of the Korea-U.S. Free Trade Agreement (FTA).
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The South Korean automobile industry, which has been hit by the “inflation control law,” is said to have been overwhelmed by a feeling of despondency beyond perplexity. South Korean companies continue to make large-scale investments in the United States, such as Hyundai Motor Group’s plan to invest 10.5 billion dollars (approximately 1.44 trillion yen) in the United States in May this year in conjunction with President Biden’s visit to South Korea. is not considered at all.
On the 10th, the Korea Automobile Industry Association sent a letter to the U.S. Congress stating that it would like the U.S. Congress to revise the Inflation Control Act so that electric vehicles made in South Korea are included in tax benefits in consideration of the provisions of the Korea-U.S. Free Trade Agreement (FTA). It was sent. The association said, “In addition to subsidies of 43.7 billion won (regarding 4.48 billion yen) for US brand electric vehicles in the first half of this year, Korean automakers have given 130 million won to the United States in the past 30 years. Through the investment of more than 100 million dollars (approximately 1.781 trillion yen), more than 100,000 American workers were employed directly or indirectly, contributing significantly to the U.S. economy.”
Inside and outside the Hyundai Motor Group, which is busy preparing countermeasures, there are reactions of “disappointment”. Hyundai’s IONIQ 5 and EV6 have recently gained popularity, and with the market share rising to the second place in the US electric vehicle market, sudden braking is unavoidable. A source from the Hyundai Motor Group said, “Subsidies are an essential factor in the sale of electric vehicles because of the high manufacturing costs.” will do,’ he said. Since the electric vehicle plant to be built in Georgia, the U.S. is scheduled to start operations around 2025, Hyundai Motor Group is reportedly considering plans to strengthen sales in Europe instead of the U.S. for the time being. .
The battery industry, which has continued to invest more in the United States, is also complaining. Three South Korean battery companies, including LG Energy Solutions, are building more than 10 battery plants in joint ventures with major automakers such as General Motors (GM) and Ford. Most of the main factories are expected to be completed between next year and 2025. However, if batteries made at the joint venture’s factory also use Chinese battery parts or Chinese raw materials, the subsidy will be reduced or excluded. An official of a battery company said, “Since even joint ventures with US companies were excluded from the subsidies, there was a high possibility that the initial sales plan would be completely derailed.” would,’ he said.
Reporter Kim Asa
Chosun Ilbo / Chosun Ilbo Japanese version
(c) Chosunonline.com
