Hyundai Motor Company has halted production of the electric sport utility vehicle (SUV) model GV70 in the United States. Hyundai Motor Company explained that the decision was made in response to low sales of the GV70 electric model in the U.S. and tariffs imposed by U.S. President Donald Trump.
According to industry sources on the 18th, Hyundai Motor Company's U.S. production facility, the Alabama plant (HMMA), stopped the production line for the GV70 electric model in June. It has been about two and a half years since the GV70 electric model was first produced in the U.S. in February 2023.
This decision was due to the fact that the number of GV70 electric models produced at HMMA had fallen to around 200 units per month. A Hyundai Motor Company official noted, "The halt was made for operational efficiency, and we have been reviewing production optimization by model since the (U.S. government's) tariff measures were implemented."
Hyundai Motor Company plans to halt production of the GV70 electric model at HMMA while continuing to sell in the U.S. It is expected to soon decide on a production base for the GV70 electric model, which could possibly be in the Hyundai Motor Company Georgia Plant (HMGMA) or domestic production and export.
Hyundai Motor Company has not decided which vehicles will be produced on the existing GV70 electric model line at HMMA. Industry observers expect that a popular hybrid vehicle will be produced in the U.S.
Changes in electric vehicle policies in the U.S. are also interpreted as having influenced Hyundai Motor Company's decision. The Trump administration had decided to abolish the policy that provided a tax credit of up to $7,500 (approximately 10 million won) for electric vehicle purchases starting next month.
Meanwhile, Hyundai Motor Company had been outsourcing production of the Tucson, which was popular in the U.S., at the Kia plant in Mexico, but this contract has also been terminated. This measure was taken considering the U.S. government's tariff policy.