Hyundai Lobbies US to Ease EV Rule That Hurts Foreign Carmakers

tech.hindustantimes.com:

Hyundai Motor Co. and the South Korean government are ratcheting up lobbying to loosen restrictions that Senator Joe Manchin fought to include in this year's US climate law, arguing the rules could blunt the automaker's rapid growth in the market.

At issue is a requirement to limit a $7,500 consumer tax credit to electric vehicles built in North America, since Hyundai won't have an EV plant there until 2025.

Democrats included the provision in the landmark climate bill to win support from Manchin, a West Virginia senator who wanted to ensure the tax credit would lead to domestic investment.

Depending on how the Biden administration chooses to interpret the law, the rule could leave Hyundai and some other foreign automakers at a disadvantage against EV makers eligible for the credit. South Korea is home to three of the world's largest EV battery manufacturers, which announced $25 billion in US investment since Biden took office. That means the US must decide how to placate an important trade partner and supplier without running afoul of the bill's intent.

While they aren't alone -- US and European carmakers are also chafing against various aspects of the bill -- the South Koreans have been particularly outspoken.

Ever since the legislation was passed, South Korean trade ministers and members of its assembly have reached out to their US counterparts in Washington to lobby for more time before the restrictions kick in, either through legislation or regulation. South Korean President Yoon Suk Yeol and other officials have brought up the issue in meetings with President Joe Biden and Vice President Kamala Harris as well.

Automakers like Ford Motor Co., General Motors Co. and Volkswagen AG already have battery and EV