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.

Categorized in: