Hyundai Motor Group is set to officially open its new hybrid and EV production facility in Savannah, Georgia, next week, intensifying its commitment to expanding operations in the United States. The move comes amid rising concerns over potential policy shifts under former President Donald Trump, who has consistently urged foreign companies to manufacture in the U.S. to maintain access to the market.
The Hyundai Motor Group Metaplant America (HMGMA), spanning 11.83 million square meters, has been partially operational since late last year. Following the upcoming ceremony, it will begin full-scale production. Currently operating at a limited annual capacity of 300,000 units, Hyundai aims to scale up to 500,000 vehicles when the $5.54 billion facility becomes fully operational.
Combined with Hyundai’s Alabama plant (330,000 units) and Kia’s Georgia plant (350,000 units), the group’s U.S. production capacity will reach approximately 1.18 million vehicles annually. Last year, Hyundai and Kia sold a combined 1.7 million vehicles in the U.S., up 3.4% year-on-year, making them the fourth-largest automotive group in the country.
The HMGMA inauguration comes at a time when global automakers are preparing for possible sectoral and retaliatory tariffs on exports to the U.S.—a core element of Trump’s ‘America First’ trade policy. According to the White House, Hyundai’s investment is considered a ‘manufacturing win’ tied to this policy approach.
Hyundai Motor CEO Jose Munoz noted that the investment in HMGMA was initiated during Trump’s first term and is a critical part of the company’s localization strategy. “This approach will help mitigate the impact of any potential policy change,” Munoz stated during a shareholders’ meeting. He also confirmed that HMGMA is ramping up production of the Ioniq 5 EV and preparing to begin production of the Ioniq 9 by the end of the first quarter, with hybrid models to follow.
Reports from Korean media indicate Hyundai may invite Trump to the ceremony, alongside figures from the current administration. Georgia Governor Brian Kemp is also expected to attend.
Hyundai is enhancing its U.S. presence through strategic partnerships, including a significant agreement signed last September with General Motors (GM). The partnership focuses on the joint production of passenger and commercial vehicles and the development of eco-friendly technologies, including electric and hydrogen-powered systems. It marks Hyundai’s first comprehensive collaboration with a major foreign automaker.
“The high U.S. sales share means the partnership will largely center on the American market,” said Kim Gui-yeon, an analyst at Daeshin Securities, who added that such cooperation could help buffer Hyundai against tariff-related risks. Observers anticipate that specific collaborative projects—potentially including vans and pickup trucks—may be announced during the HMGMA ceremony.
Meanwhile, Hyundai Steel, the group’s steel manufacturing arm, is considering building its first overseas automotive steel plant in the U.S. Currently, the group relies on steel produced in Korea for its American-made vehicles, but a U.S.-based mill would align with ongoing efforts to localize production in response to protectionist policies.
Hyundai’s shift in strategic focus is also evident in its decision to skip the Shanghai Motor Show in April—the first time since it entered the Chinese market in 2002. The decision underscores a pivot toward reinforcing its U.S. market position as it continues to face challenges in China, where competition from local automakers like BYD remains intense.
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