Hyundai to Invest $2.7B in Georgia, Showing Commitment Despite Immigration Raid

Even after a Sept. 4 immigration raid that threw a wrench into its operations, Hyundai Motor Group this week said Thursday it would invest $2.7 billion more in Georgia, clarifying plans to create thousands more jobs at its Metaplant near Savannah. 

Hyundai announced earlier this year that it would basically double down on the $20.5 billion the conglomerate has already invested in the United States, but it hadn’t said how its Georgia car facilities would be affected. 

The timing of the new investment this week, at a global investor conference held for the first time in the U.S., underscores commitment to Georgia executives said remains solid in spite of the immigration snafu. 

The raid, which has played out on television screens across Asia with horror stories shared by returned detainees, has shaken investor confidence in the U.S. 

In March, Hyundai said it would put $9 billion more into U.S. automotive manufacturing, boosting domestic production capacity to 1.2 million units, as part of a $21 billion U.S. investment plan that also included a steel mill in Louisiana. In August, as Korean President Lee Jae-myung visited the White House, Hyundai tacked on $5 billion more to the overall total. 

Hyundai told Global Atlanta that latest Georgia investment would create 3,000 “direct and indirect jobs” on and around the site.

Tami Overby, a Korea trade expert at DGA Group, said Hyundai Motor Chairman Chung Eui-sun was noticeably absent during the parade of business leaders traveling with Mr. Lee to the White House in August, perhaps, she said, a sign of discontent at the company over 25 percent auto tariffs imposed in April, days after he had joined President Trump to announce the U.S. investment plan.  

Hyundai’s U.S. subsidiaries, Ms. Overby noted, had spent $1 million to be present at Mr. Trump’s inauguration, the first time she remembers seeing Korean companies getting involved in American politics. 

“I’m not sure the Americans even realized that maybe he’s a little unhappy. And I can certainly understand why,” Ms. Overby said during an event in Atlanta Thursday. 

This week, Hyundai clarified it would raise production capacity in Georgia to 500,000 units per year in the second phase of its plant over the next three years, a ramp-up CEO Jose Muñoz sees as being driven mainly by hybrids. 

That’s a shift from initial plans for the plant for the plant to operate as a pure-electric factory. Now, with the repeal of incentives and flagging demand for EVs, Hyundai is leaning more heavily into hybrids. More than 18 new hybrid models will be introduced globally by 2030, with 10 hybrid and EV models set to be made at Hyundai Motor Group Metaplant America, the company announced. By that time, 60 percent of vehicles sold globally will be electrified, a category that includes hybrids and battery-electric vehicles. 

The new models will include a mid-size pickup truck for the U.S. and extended-range EVs launching in 2027 that will achieve 600 miles of range by combining smaller “in-house” batteries with conventional motors, with the goal of “eliminating range anxiety.” 

In the U.S., plans for next-generation batteries could hinge on Hyundai getting its joint-venture battery factory with LG up and running. That $4.3 billion site, targeted in the ICE raid, has been delayed for at least two months.

Ms. Overby said restoring confidence will involve reassuring investors that this was a “one-time mistake.”

“And every Georgian in this room, y’all need to pray that happens, because you want these investors to move forward,” she said.

Mr. Kemp, making no mention of the tense situation, posted a brief statement on X welcoming Hyundai’s new commitment to Georgia: 

“We look forward to working with them on their continued growth and success for years to come!” 

Georgia Department of Economic Development Commissioner Pat Wilson had this to say, as shared on LinkedIn:

“Today is a day to celebrate – Hyundai is continuing its historic investments in its state-of-the-art Georgia facility. From the beginning, Hyundai and our state and local partners have made this partnership a mission to maximize the possibilities for the future.”