According to Reuters, on December 21, Hyundai Motor announced that it plans to cease operations at two South Korean component forging factories under its umbrella next year, as the company accelerates its shift away from traditional gasoline-powered vehicles.
The two factories slated for closure next year are both located in Ulsan, South Korea, and have been producing engine components since 1991. They are expected to shut down in January and October of the coming year. A spokesperson for Hyundai Motor mentioned that the company is considering outsourcing some of the engine component manufacturing operations from these factories.
Currently, Hyundai Motor is gradually reducing the proportion of internal combustion engine vehicles in its product lineup and is optimistic about the development of the electric vehicle market, particularly in the United States. Last month, executives from Hyundai Motor and Kia Corporation stated that they anticipate strong demand in the U.S. electric vehicle market, a viewpoint that contrasts with some competitors' perspectives. Many companies are concerned that inflation and rising interest rates may impact the flourishing development of the electric vehicle market. Major electric vehicle manufacturers like Tesla and Ford have also delayed construction plans related to electric vehicles.
On November 13, Hyundai Motor officially broke ground on a dedicated electric vehicle factory in Ulsan, South Korea, with an investment of 20 trillion won (approximately $15.2 billion). This move is expected to accelerate the company's transition to electrification. Additionally, at the end of November, Hyundai Motor Company stated in a regulatory filing that it plans to halt production at its factory in Yashan, South Korea, between December 31, 2023, and February 13, 2024, to establish an electric vehicle factory.
