Wednesday, July 30, 2025

Foreign Auto Plants in US 7-30-25

Here's an overview of foreign auto companies adding or expanding auto plants in the US in 2025:

·       Hyundai Motor Group: Has made significant investments in expanding its manufacturing capabilities, including its Metaplant in Georgia and a new steel plant in Louisiana. They are increasing production capacity for both electric vehicles (EVs) and hybrid vehicles, aiming for an annual capacity of 1.2 million vehicles across the Hyundai, Kia, and Genesis brands by 2028. The Metaplant alone is expected to produce up to 500,000 electric and hybrid vehicles annually and plans to employ 8,500 people by 2031. Their investment also includes a focus on future technologies like autonomous driving, robotics, and AI.

·       Honda: Is shifting production of the Civic from Japan to the US and is manufacturing the next-generation Civic hybrid at an existing plant in Indiana.

·       Mercedes-Benz: Is expanding its existing Tuscaloosa, Alabama, plant and adding production of a new vehicle there.

·       BMW: Is investing heavily in its Spartanburg, South Carolina, plant to prepare it for EV production and is also building a battery assembly facility nearby.

·       Toyota: Is expanding its existing US plants and will soon begin shipping batteries for North American electrified vehicles from its new battery plant in North Carolina.

·       Kia: Is expanding its US production with the assembly of the EV6 and EV9 electric SUVs at its plant in West Point, Georgia, after a $217 million investment.

·       Volkswagen: Is investing in a new manufacturing plant in South Carolina to produce battery-powered and hybrid SUVs and trucks, with production slated to begin in 2027.

·       Volvo Cars: Is expanding production at its Charleston, South Carolina factory, adding a new plug-in hybrid mid-sized SUV model alongside the electric EX90.

·       Audi: Is nearing a decision to build its first US-based factory.

·       Nissan: Is considering moving some production from Mexico and Canada to the US and has maintained a second shift at its Tennessee plant despite a previous decision to cut it.  

In essence, major foreign automakers are making substantial investments in expanding or establishing new manufacturing facilities in the US, particularly focusing on Electric Vehicles (EVs) and hybrids, as well as associated components like batteries. These investments are driven by factors such as a desire to localize production, mitigate the impact of tariffs, and capitalize on the growing US market for EVs, according to Electrify NewsReuters, and Al Jazeera. The expansion plans are creating thousands of jobs and contributing to economic growth across the country. 

Note: It's important to recognize that some of these plans, particularly those involving new plants, span several years and could be subject to changes based on market conditions and other factors. 

What foreign auto companies are adding auto plants to us 2025 ai overview

Here's a look at foreign auto companies adding or significantly expanding production facilities in the US in 2025, with an eye towards AI and related technologies:

·       Hyundai Motor Group: They're investing heavily ($21 billion from 2025 to 2028) in the US, including expanding auto production capacity, increasing parts localization (especially for EVs and batteries), and strengthening partnerships in future technologies like autonomous driving, robotics, and AI. Their Georgia facility (the "Metaplant") is a prime example of their focus on highly connected, automated, and flexible manufacturing systems optimized with AI and data, aiming to create a human-centered work environment with robots assisting human workers.

·       Toyota: They have completed construction of their first US battery plant in North Carolina, with shipments for North American electrified vehicles scheduled to begin in April 2025. This plant will produce batteries for a variety of electric vehicles (hybrid, plug-in hybrid, and battery electric) and is part of Toyota's commitment to use 100% renewable energy for production and achieve carbon neutrality by 2035.

·       Kia: As part of the Hyundai Motor Group investment, Kia is ramping up its US EV production, with their West Point, Georgia factory starting local EV6 production in January 2025, sooner than initially planned due to tariff concerns.

·       Polestar: This Chinese-owned brand began producing its EVs in the US for the first time in August 2024 at a Volvo facility in South Carolina, partly to avoid tariffs on Chinese imports.

·       Honda: They are reportedly shifting production of the Civic from Japan to the US, likely influenced by potential tariffs and a focus on domestic production. 

This trend of foreign automakers expanding or adding production in the US is driven by several factors, including:

·       Tariff avoidance and incentives for domestic manufacturing: The current political climate and potential tariffs are creating strong incentives for foreign companies to localize production in the US.

·       Strengthening supply chains: Geopolitical and environmental concerns have prompted manufacturers to focus more on developing North American supply chains for components and raw materials, according to Thomasnet.

·       Investing in future technologies: Companies like Hyundai are strategically investing in areas like AI, robotics, and advanced air mobility to enhance their competitiveness and innovation in the US market. 

The adoption of AI and robotics is transforming the automotive industry globally, including in the US. While this can lead to increased efficiency and quality, it also raises questions about the impact on employment in the automotive sector. 

https://www.google.com/search?q=what+foreign+auto+companies+are+adding+auto+plants+to+us+2025

It is more accurate to say that Mercedes-Benz plans to expand its existing US plant rather than build a new one, and Volkswagen (VW) is considering expanding its US production capacity, potentially for Audi and Porsche, but hasn't announced a new plant yet. 

Here's an overview:

·       Mercedes-Benz: Plans to add a new "core segment" vehicle to its plant in Tuscaloosa, Alabama, by 2027. This is an expansion of an existing facility rather than a brand-new plant. AutoForecast Solutions predicts this will be the compact GLC crossover.

·       Volkswagen: Is exploring options for increasing US production, potentially including Audi and Porsche vehicles, possibly at the existing Chattanooga plant or a future South Carolina site. This is primarily driven by a desire to avoid potential tariffs on imported cars from Europe and Mexico. VW is also investing significantly in Rivian, an Illinois-based electric vehicle company, as part of a joint venture focused on electric vehicle architecture and software development. 

Key takeaways:

·       Tariffs play a significant role: Potential tariffs imposed by the US government are a major factor influencing the decision-making of both automakers.

·       Expansion of existing facilities is the primary focus for Mercedes-Benz.

·       VW is exploring possibilities for new production, but a firm decision is pending.

·       The Inflation Reduction Act (IRA) and associated incentives are impacting automakers' decisions regarding EV manufacturing in the US. 

https://www.google.com/search?q=are+vw+and+mercedes+going+to+add+plants+in+us+ai+overview

Comments

The US will grant a 15% Corporate Tax for foreign car plants that locate in the US and hire US workers. This allows these companies to save 10% on taxes and save transportation costs.

Norb Leahy, Dunwoody GA Tea Party Leader

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