The US government plans to make new rules against cars connected to China later this year. Hyundai is taking steps now to lessen the impact of these rules on its cars, like the Ioniq 5 electric vehicle and the Kona. They might make more cars outside of China just to be safe.
The Biden administration announced a big tax on electric cars made in China. They want to target cars connected to China because they could be a risk to national security and share data with the Chinese government.
“Hyundai and Kia need to prepare for the worst by making fewer cars in China and getting parts from other countries like Vietnam,” said Lee Ho-geun, a car expert from Daedeok University.
He also said there might be rules against cars that use parts from China. Hyundai is not the only company thinking about making cars in different places to avoid taxes and new rules on imported cars and parts.
BMW said they want to make more cars in Hungary, Mexico, the US, and China. They think this will help them make new cars like the X3 without any delays. They say it’s important to focus on different regions.
Volkswagen and Honda are also planning to make new factories in the US and Europe. They’re doing this partly because of new tax credits that make it cheaper to make cars in America. With rules changing all over the world, it’s important for car companies to have many places to make cars and get parts from.
