• Hyundai considering a new EV production plant in North America, and Canada is a possibility.
When it comes to Hyundai and vehicle production in Canada, there’s an unfortunate history that comes to mind, particularly to folks in Quebec, and more particularly in the Bromont region east of Montreal. Back in the 1980s, the Korean automaker built an assembly plant there at great expense ($450 million), only to shutter it just a few years later.
That plant was inaugurated in 1986 and closed first in 1993, then more definitively in 1994. The facility never operated at full capacity, in fact, during its brief presence in the region, it never exceeded 20 percent of its total production capacity.
A lot has changed since then. Hyundai is no longer a fledgling company trying to establish itself. The Hyundai Group is now the world's third-largest automaker. Here in Canada, it ranks fourth in total sales behind Ford, General Motors (GM) and Toyota - and ahead of Stellantis, Honda and Volkswagen.
With the exception of VW, all the other automakers mentioned assemble vehicles in Canada, more specifically in Ontario. And Volkswagen recently announced the construction of a battery manufacturing plant for electric vehicles, also in Ontario.
Now, Hyundai is considering Canada as a location for a second EV assembly plant in North America.
Update: Hyundai Canada is taking pains to clarify that there is nothing imminent or even on the horizon as yet regarding any future North American plant. A company spokesperson relayed a statement to that effect:
"Hyundai Motor Company has no current plans for a new manufacturing facility in Canada. As the company continues to grow it regularly evaluates its supply chain needs across the North American region."
- Hyundai Canada
If Hyundai does return to Canada, it will be because of electrification. The auto giant is currently building its first plant dedicated to electric vehicles in North America, in the southern U.S. state of Georgia. The goal for Hyundai is to increase sales of current and future EVs on our continent. The American plant is the first phase of this project. As Don Romano, CEO of Hyundai in Canada, told Automotive News, details of the second phase has not yet been decided on.
That's where Canada is part of the conversation. Romano said that a series of discussions with Canadian officials have already taken place, but that the company has also held talks with the American and Mexican governments.
On its own, the Georgia facility won't be able to produce enough vehicles to meet the company's North American targets, hence the necessity for a second plant. Now it’s likely going to come down to which country’s government is willing to fork over the billions of dollars in subsidies that will sway Hyundai’s decision - because that's how the game is currently played within the automotive industry.
Stay tuned.