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Ellabell Oct 26 (BUS): A robotic dog delivered a toast of champagne and the Georgia governor and junior US senator joined in a brief bipartisan celebration ahead of the high-stakes election as Hyundai Motor Group kicked off its first US plant dedicated to manufacturing electric vehicles on Tuesday.
Just five months after Hyundai announced a $5.5 billion manufacturing plant in Bryan County, west of Savannah, swathes of the site have already been cleared of trees. Oison Chung, Hyundai Motor Group CEO, said the plant would be the envy of the industry.
The South Korean company plans to open the plant in 2025, with at least 8,100 employees producing up to 300,000 electric vehicles annually. Georgia officials say it is the largest economic development project the state has ever seen, according to the Associated Press (AP).
“This is a transformation for the region, not just for people’s children now, but for their grandchildren,” said Governor Brian Kemp. “This will be a project that will resonate for generations to come.”
The timing was no better than that of Kemp, Republican and Democratic Senator Raphael Warnock. The groundbreaking ceremony was held two weeks before the November 8 elections in which the two men face formidable rivals for the top of the ballot.
After a yellow and black robot dog threw champagne flutes to Kemp and top Hyundai executives to prepare a festive toast, officials joined other dignitaries in batch-picking to turn festive scoops of dirt. After that, Kemp and Warnock exchanged a short handshake.
“I would like to see more of that kind of cooperation, quite frankly,” said Warnock, whose race with Republican Herschel Walker will help determine which party controls the US Senate. “At the end of the day, we want to see more jobs in Georgia.”
Kemp faced a rematch on Election Day with Democrat Stacy Abrams, and worked with state and local officials to lure Hyundai to Georgia with a package of $1.8 billion in tax breaks and incentives.
President Joe Biden has also embraced boosting US production and sales of electric cars as a key part of his strategy to slow climate change and add manufacturing jobs. The White House recently announced a $2.8 billion grant to increase electric vehicle battery production in 12 states.
The comprehensive climate and health care bill that Democrats passed in Congress in August also includes incentives to manufacture and purchase electric vehicles, including tax credits for buyers of electric vehicles worth up to $7,500.
However, the tax credit has injected some tension into Hyundai’s dealings with Washington. Changes made by Congress to the tax credit limit eligibility only to electric vehicles produced in North America. This means Hyundai EVs will no longer be eligible until the company begins production in Georgia.
South Korea’s ambassador to the United States told dignitaries at Tuesday’s event that his country believes the revised tax credit for electric vehicles unfairly excludes Hyundai as it is committed to expanding electric vehicle production in America.
“Korean companies now face the risk of being disadvantaged by the provision of the electric vehicle tax credit,” said Ambassador Tae Young Cho. “I think it’s not good for the Korea partnership, for the state of Georgia, not even for the common cause of climate change by limiting consumer choices.”
Warnock voted for the Inflation Reduction Act that contained the revised tax credit. He defends the law in general, saying it shows the United States is serious about investing in electric vehicle manufacturing. Meanwhile, he introduced a bill that would delay the date the tax credit reviews will go into effect. He also asked the Treasury Department to use “maximum flexibility” in approving regulations to implement the new standards.
“I will continue to work with Ambassador Chu as well as with other officials to do everything in our power to perfect what is already a clear win,” Warnock said after Tuesday’s ceremony.
While Georgia officials celebrated the Hyundai project, the state’s other big deal to build a $5 billion EV plant east of Atlanta ran into deeper problems.
Electric truck maker Rivian last year announced plans to hire 7,500 workers in Georgia. But a Morgan County judge last month rejected a plan by local governments to exempt Rivian from an estimated $700 million in property taxes, with the company agreeing to pay $300 million in lieu of taxes. State and local officials are considering appealing a judge’s decision.
The property tax credit was a large part of the $1.2 billion in stimulus for Rivian, a California automaker that has seen its stock fall sharply this year and recently announced a major drawdown to tighten a loose lock that could affect drivers’ ability to steer.
Asked Tuesday if he thought the Rivian plant in Georgia would continue, Kemp said: “I’m very confident.”
“The vast majority of people want Project Rivian to come,” the governor said, adding, “We are excited about the all-electric vehicle market here in Georgia.”
HF