According to the auto industry on Monday, Stellantis, which has operations in Europe and the United States, has entered a restructuring phase as it revises its EV strategy. It has begun running restructuring programs, including large-scale voluntary retirement, in major markets such as South Korea.
The shift follows losses of 22.2 billion euros (about 38.4 trillion won) tied to its EV business reset. In October, the U.S. government tightened requirements for EV tax credits under the Inflation Reduction Act, prompting automakers to slow EV rollouts and focus more on profitability.
General Motors last month reduced a Canadian plant from three shifts to two and cut about 500 jobs. Ford is estimated to have absorbed losses of US$19.5 billion while adjusting its EV investment plans.
Hyundai Motor Group, meanwhile, has continued to expand in North America, boosting sales and investment as rivals pull back. The group has been increasing hybrid output to raise market share.
At its 2025 CEO Investor Day, Hyundai said it would expand its hybrid lineup from 14 models to at least 18. Kia lowered its 2030 target for EVs as a share of sales to 30% from 38% and said it would raise hybrids to 26% from 20%.
The approach has supported results. Last year, Hyundai Motor Group sold a record 1,836,172 vehicles in the United States, up 7.5% from a year earlier. Its U.S. market share rose to 11.3% from 10.8%.
In January, combined sales by Hyundai (including Genesis) and Kia rose 7.7% from the same month a year earlier to 125,296 vehicles, helped by strong demand for hybrid models such as the Palisade.
Hyundai plans to keep increasing investment to match sales growth. By 2028, it plans to invest US$26 billion in the United States and expand capacity at its Georgia Metaplant (HMGMA) to 500,000 vehicles a year from 300,000. A Hyundai-LG Energy Solution joint venture battery cell plant is also targeting completion and start of operations in the first half of this year.
As Hyundai Motor Group increases local production, the industry expects South Korean parts suppliers to step up expansion of their North American manufacturing bases as well.
A Hyundai official said expanding hybrids and local production in line with U.S. sales trends has strengthened the group’s competitiveness in North America.
* This article has been translated by AI.
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