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Kia to qualify for US tax incentives by moving electric vehicle manufacturing capacity

 Kia to qualify for US tax incentives by moving electric vehicle manufacturing capacity
The Kia EV6 is a compelling alternative to US-made crossovers, adore the Tesla Model Y. (Image source: Kia)
The Kia EV6 is a compelling alternative to US-made crossovers, adore the Tesla Model Y. (Image source: Kia)

It looks as though the US’s opinion to disclose manufacturing lend a hand to the American continent is paying off. Kia has confirmed that it is brooding about shifting electrical automobile manufacturing some distance from Korea to its manufacturing facility in Mexico in uncover to steal profit of the US tax incentives. If correct, the Kia EV6 would starting up at precise US$41,200 after US tax credit ranking.

The unusual US tax credit ranking program that came into attain with the Inflation Sever price Act this April dealt a distinguished blow to thriving Korean and Chinese electrical automobile makers. After the bill went into attain, vehicles would be pleased to meet minimum requirements for the sourcing and manufacturing of severe battery minerals, and the final meeting has to occur in North The US. Kia did prepare to search out a loophole by ability of leasing prison guidelines that allowed investors to steal profit of tax incentives, however, at the time of writing, no Kia qualifies for tax incentives if offered outright.

Kia is hoping to commerce that, if a picture by The Korea Herald is correct. Kia is currently deciding whether or no longer it can well also composed transfer manufacturing skill over to its existing manufacturing facility in Nuevo Leon, a utter come the US-Mexico border. This announcement comes hot on the heels of an announcement that Kia is planning to be pleased a entirely operational EV manufacturing facility in the US utter of Georgia by the quit of 2024. Absorbing EV manufacturing to the Mexico manufacturing facility would enable Kia to steal profit of US subsidies to assemble its vehicles extra realistic, per chance clawing lend a hand market portion one day of.

Tesla additionally unbiased no longer too long ago made a prime investment in the Mexican border utter to win the upcoming Model 2 there. With the continuing electrical automobile designate competition and the true uptick in EV adoption, it be clear that makers adore Kia, Toyota, and Hyundai must always reply to the US authorities’s rules to discontinuance linked to US patrons.

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Julian van der Merwe, 2023-05-19 (Replace: 2023-05-19)

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