Hyundai, Kia, Genesis Meta Factory Visit Shows They Are Prepared For The Future

I was invited recently to come to beautiful Savannah, Georgia, to both tour the new Hyundai Motor Group Metaplant America (HMGMA) and drive the new IONIQ 9, a new large and luxurious SUV from Hyundai. Hyundai Motor Group means Hyundai, Kia, and Genesis (all of which have separate designers and marketing organizations). The three different brands can use the factory to build their cars their to sell into the US market (and export if they wish). It is good timing that they opened the factory at about the same time Trump was elected, since we are now seeing him increase tariffs on many imported goods, including vehicles and auto parts.

The situation is quite dynamic, but Hyundai Motor Group is glad to have three factories in the US. It built a factory in Montgomery, Alabama, in 2005; a Kia plant in West Point, Georgia, started in 2006; and their newest factory that this article is about is in Savannah, Georgia.

Note: I wrote about the IONIQ 9 here.

Conclusion

The Hyundai Group seems to be well positioned to weather the dramatic changes in the US auto market. From a product standpoint, they have a broad range of sedans, SUVs, and even a pickup. So, they aren’t dependent on one or two types of vehicles like the “Big Three” that dropped their sedans. They haven’t jumped from gas vehicles to electric vehicles, but are trying to offer customers their choice of gas, hybrid, plug-in hybrid, or full electric vehicles.

I do think they could drop their non-hybrid gas vehicles like BYD has done and Toyota is gradually doing, since the cost premium for hybrids is minimal now. If we get a new administration in 2028 that is pro electric vehicle, Hyundai has the modern and efficient designs that it can ramp up. If the US continues to remain hostile to electric vehicles, it will still grow, just more slowly. Hyundai needs great electric vehicles to be competitive anywhere else in the world, so I think there is little risk it will abandon them.

Pivoting back to my factory visit, the thing that made the biggest impression on me was Hyundai Group’s concern for its employees and making a clean, safe, quiet, and enjoyable place for them to work. I think that will pay dividends for the company for years to come as it gets a reputation as a good place to work in the local area.

Disclosure: I am a shareholder in Tesla [TSLA], BYD [BYDDY], Nio [NIO], XPeng [XPEV], NextEra Energy [NEP], and several ARK ETFs. But I offer no investment advice of any sort here.