Hyundai, Kia and Ford reveal plans to accelerate EV strategy

Hyundai Kia and Ford have followed Stellantis in outlining a new strategy that will accelerate the development of electric vehicles (EVs).

While Hyundai outlined its steps to increase its EV production capacity with new manufacturing facilities, sister brand Kia committed to launching 14 new electric vehicles (EVs), including two pick-up trucks by 2027, in a presentation this week.

Ford, meanwhile, has revealed plans to split its operations into two separate entities, specializing in EVs and internal combustion engines (ICE).

The move accelerates Ford+’s plans – announced last year – to deliver the company’s total adjusted EBIT margin of 10% and annual production of more than two million EVs by 2026, with EVs expected to account for half of global volumes by 2030.

Ford will create the Ford Model e division, which will accelerate innovation and delivery of breakthrough EVs at scale and develop connected vehicle software and technology, and the Ford Blue division, which will build the automaker’s ICE vehicle portfolio to drive growth and profitability.

OEMs expect to spend $5 billion (£3.7 billion) on EVs by 2022, including capital outlays, costs and direct investment – ​​a double increase from 2021.

Last month Ford Europe appointed former Audi UK managing director Martin Sander as its new general manager, Passenger Vehicles, to propel it into a new era of electric vehicle (EV) sales.

Ford President and CEO, Jim Farley, said: “The Ford Model e will be at the center of Ford’s innovation and growth, a team of the world’s best software, electric, and automakers unleashed to create truly electric vehicles and digital experiences. extraordinary for the new generation of the automotive industry. Ford customers.

“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, strengthen our successful family of iconic vehicles and earn greater loyalty by providing exceptional service and experiences. It’s about leveraging a century of hardware mastery to help build the future.

“This team will be deeply committed to delivering leading quality, tackling waste in every corner of the business, maximizing cash flow and optimizing our industry footprint.”

Kia EV Acceleration

At Kia’s 2022 CEO Investor Day virtual event this week, the Korean automaker revealed the promise of an EV launch as part of the brand’s strategy to achieve 1.2 million annual EV sales by 2030 and overall vehicle sales of four million.

It previously outlined plans to launch 11 EVs by 2026, while its sales ambitions for EVs have increased by 36% from the target set last year.

To achieve its new 2030 sales target, Kia said it will expand sales of green vehicles (including EVs, plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV) from 17% of global sales in 2022 to 52%). in 2030.

It will also launch at least two EVs per year and build a full lineup of 14 EVs and two electric pick-up trucks by 2027.

Its flagship large EV9 SUV will launch in 2023. It will have a range of about 335 miles and will provide a driving range of 60 miles from a six-minute charge, the brand said.

Ho Sung Song, president and CEO of Kia Corporation, said: “Kia has undergone a full-scale transformation that includes changes in the company’s vision, logo, product and design, and strategy.

“To achieve the company’s vision of becoming a Sustainable Mobility Solutions Provider, we will focus on accelerating the transition to the future business model.

“We will become more customer-centric in our approach and pursue dynamic transformation while maintaining healthy business operations.”

Hyundai plans

Kia’s sister brand, Hyundai, will introduce 17 new battery electric vehicle (BEV) models in 2030 – 11 Hyundai models and six for its Genesis luxury brand.

At the unveiling of the company’s electrification roadmap at CEO Investor Day 2022 forum this week, Hyundai revealed it is targeting annual EV sales of 1.87 million units by 2030 as it aims to take a 7% market share in the global EV market as a whole.

Three sedans, six SUVs, one light commercial vehicle and one new type model make up its EV launch plans.

Later this year, Hyundai will start sales of the Ioniq 6, followed by the Ioniq 7 in 2024.

Hyundai aims to establish a high-efficiency manufacturing process for EV production to accelerate the transition to electrification.

The existing production facilities in Korea and the Czech Republic will be equipped with a new factory in Indonesia which will start EV production this year.

Hyundai President and CEO, Jaehoon Chang, said: “Hyundai successfully accelerated its transition to electrification and became a global leader in EV despite the challenging business environment caused by global chip shortages and the ongoing pandemic.

“Along with our seamless efforts to increase the value of EVs, Hyundai Motor will continue to secure its business continuity as a ‘Mobility Solutions Provider’ through advanced technology not only hardware but also software.”

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