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Hyundai halts production of another luxury EV
Another one bites the dust. Hyundai Motor has halted production of another luxury EV in the US to focus on more popular models like its best-selling Tucson SUV.
Hyundai is shifting its EV production plans in the US
The move is part of a broader shift in Hyundai’s global production network as it gears up for upcoming policy changes, including higher tariff rates and the elimination of tax credits for electric vehicles in the US.
According to a new report from Business Korea, Hyundai has already ceased production of the Genesis Electrified GV70 in the US. Industry sources claim that Hyundai halted production of the luxury EV at its manufacturing plant in Alabama in June.
The Genesis Electrified GV70 marked a milestone as it rolled off the assembly line in February 2023, becoming Hyundai’s first US-made electric vehicle.
Hyundai invested nearly $300 million to upgrade the facility and boost SUV production, including under the luxury Genesis brand. However, sales have failed to live up to expectations.
In the first seven months of the year, Hyundai built just 1,367 Genesis GV70 EVs in Alabama, 18% fewer compared to the same period last year. Last month, sales sank to a record low with just 15 models delivered.
After halting production in June, Hyundai has been just selling down inventory rather than producing new models.
With the federal EV tax credit set to expire at the end of September, Hyundai is shifting production plans in the US and globally.
The Korean auto giant is expected to lean into higher-profit SUVs and hybrids, like the Santa Fe and Tucson, to offset the extra costs. With production of the Santa Fe Hybrid surging to 6,888 last month, Hyundai could replace the electric Genesis GV70 with more popular SUVs at the facility.
Will the Genesis Electrified GV70 still be made in the US?
Hyundai is currently reviewing a few different options. For one, it could relocate the GV70 EV to its new manufacturing plant in Georgia, to be built alongside the IONIQ 5 and IONIQ 9.
The Business Korea report claims Hyundai is “seriously considering” building the luxury EV in South Korea and exporting it to the US. Although it would get hit with the added tariffs, analysts believe it could be less expensive than creating a new production line.
Hyundai will do the same with the new IONIQ 6, which is set to launch later this year. Instead, the company is expanding production of its top-selling Tucson SUV.
In response to Trump’s 25% tariff rate on imports, Hyundai is shifting all Tucson production from Kia’s plant in Mexico to Alabama.
The news comes after Hyundai already pulled one luxury EV from its US lineup, the Genesis Electrified G80, earlier this month.
As the EV tax credit deadline approaches, Hyundai is offering some of the biggest discounts in the US. After cutting lease prices again last month, the 2025 IONIQ 5 is now listed starting from just $179 per month. Hyundai’s first three-row electric SUV, the 2026 IONIQ 9, can be leased from $419 per month.
Genesis is also offering generous savings with up to $18,000 off the Electrified GV70 and $13,750 off the GV60 to move inventory.
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