Kia plans to assemble electric cars in the US to meet Biden tax credit

Kia plans to assemble electric cars in the US to meet Biden tax credit

Electrification has taken an important direction in the United States at the level of electric vehicles, since the new regulations to obtain tax credits of up to $7,500 dollars were a trend when they were made official.

For consumers, it is attractive to know that meeting certain requirements they can opt for said discount to minimize costs, For example, an attractive electric car costing $35,000 would come in at $27,500 under this criteria.

However, for the manufacturers of the market it represents a true retro, because in order to be eligible for this tax credit, the vehicles selected by the customers must have a part of their materials manufactured in the country, or from a local distributor.

Clearly, the measures completely change the perception of the US automotive market for companies that manufacture most of their cars outside the US., which are also successful in the country.

Kia is one of those examples, because its EV6 model is assembled in South Korea, being quite demanded in North America. Now, according to local media reports such as Maeil Business and SBS, the Asian company plans to move part of its operations to the United States from 2024.

In this way Kia will fall under the regulations that were included in the recently approved Inflation Reduction Law supporting and ensuring its participation in the North American automotive industry, despite the fact that it had previously been reported that the brand, together with Hyundai, planned to take legal action in the face of these regulations.

Opinions divided on the measure of electrification in the United States

Undoubtedly, complying with these regulations approved by the United States government will be complicated, although some interpret it as a guarantee of backing and support for national production.

However, foreign entities such as the European Union He assured through Miriam García Ferrer, spokesperson for the European Commission, according to CNBC, that this law could violate the rules of the World Trade Organization by “discriminating against trade partners other than the US.”

“We think it’s discriminatory, that foreign producers are being discriminated against relative to US producers,” Garcia Ferrer pointed out.

Ellie Gibson
Meet Ellie Gibson, an accomplished automotive author and industry expert based in the United States. With over a decade of experience in the automotive field, Ellie has a deep understanding of the latest technologies and trends in the industry. She has written several books on the subject, including "The Future of Electric Cars" and "The Evolution of the Automotive Industry." Her books are widely considered to be must-reads for anyone interested in the field, and she is often sought after as a speaker and commentator on automotive industry topics. Ellie is also a regular contributor to leading automotive publications and websites, where she provides expert analysis and commentary on the latest industry news and developments. In addition to her work as an author and industry expert, Ellie is also an avid car enthusiast and enjoys participating in motorsports events. She is passionate about educating the public about the latest advancements in the automotive industry and enjoys helping people make informed decisions when purchasing a vehicle.