Hyundai Motor Group (HMG) said it planned to use KRW7.8trn (US$6.1bn) of vehicle down payment money held by its overseas operations to invest in its global electric vehicle (EV) manufacturing operations, according to local reports.
Hyundai Motor Company, Kia Corporation and the group’s in-house components manufacturer Hyundai Mobis would each receive US$2.1bn, US$3.3bn and US$200m respectively from group operations in the US and Europe in the form of special dividends to fund investment in EV manufacturing operations at home and overseas.
Hyundai Motor said it would also receive special dividends from its Hyundai Motor India vehicle manufacturing subsidiary.
HMG said key overseas subsidiaries including Hyundai Motor America, Hyundai Motor India, Hyundai Motor Manufacturing Czech, Kia America, Kia Europe and Kia Slovakia all reported strong earnings growth in 2021 and 2022 despite the Covid pandemic.
The automaker said in a statement: “The dividends from overseas operations will help the three companies cut back on bank loans which will enhance their financial status and allow them to make aggressive investments in EV manufacturing."
Earlier this year HMG said it would invest KRW24trn in domestic and overseas EV manufacturing by 2030 as the group aims to become the world's number three EV maker by the end of the decade, helped by the launch of 31 new BEVs in the next seven years.
The company was scheduled to complete construction of a new 150,000 units a year EV production line at its main Ulsan plant in South Korea by 2025 while Kia recently began construction of a 150,000 units EV plant within its existing Hwaseong complex with competition also scheduled for 2025.
HMG is also investing in a dedicated US EV facility in Georgia which will have capacity for 300,000 Hyundai, Genesis and Kia vehicles per year from 2025.
The company said the funds would also be invested to develop future mobility parts and technology, establish EV infrastructure and explore new EV business opportunities.
