Hyundai Motors is a South Korean company that is now top of the peak in technology and that is why the governments of different countries have also started trusting them. Now the question arises that in such technology and companies collaborations why will government interfere and like them? So the whole matter caught quick air when the news flew here and there when the Government of Georgia offers a huge amount of money to the company for the upcoming project.
Now without any confusion let me clear the whole incident and what actually the scenario is.
SAVANNAH, Ga is the oldest city in the U.S. state of Georgia and local governments are offering a huge amount which is $1.8 billion in tax breaks and another incentive for Hyundai Motor in order to build its first U.S. plant dedicated to electric Vehicles near Savannah.
Well according to the agreement disclosed on July 22, The company agree to a $5.5 billion investment. After the agreement now Hyundai is ready with their 8100 force of workers. No matter what here we must say that this will be the largest economic development deal in the history of the state as well as Hyundai. Not even this Georgia is just ready for the upcoming deals with electric vehicle maker Rivian to build a factory in the state in the upcoming months.
Basically, the Government of Georgia is just thinking about the welfare of the economic development. In other words, this may be a generational project to solidify our spot at the vanguard of the EV transition. According to the statement by ” Pat Wilson, the state’s economic development commissioner, they will also focus on the topic where they can ensure that thousands of Georgians across the state will benefit from the jobs of the future,”
Now let’s back to the Hyundai work process. So the company executive of Hyundai and Gov. Brain kemp announced the project champagne toast deal in May. The project will be the sprawling 2,900-acre site in Bryan County, west of Savannah. According to the report Hyundai plans to start constructing the plants next year. The target producing up to 300,000 vehicles per year in 2025. Not even this the new factory will also produce vehicle batteries.
There are so many reasons to track this deal.
- Overcome the labor shortage.
- To improve Unemployment.
- To improve economic development.
- Jobs for the future
But the icing on the cake is the incentive which was more than $300 million promised to Rivian. Here we must say that Hyundai gets about $230,000 on creating per job and this amount is equal to Georgia and four counties in the Savannah area.
Hyundai’s payroll may be expected to reach $4.7 billion in the upcoming 10 years if the new plan will continue working. Apart from the suppliers are now so excited and expected to create thousands of additional jobs in the state. The $1.8 billion in incentives is easily the largest subsidy package a U.S. state has ever promised for an automotive plant, said Greg LeRoy, executive director of Good Jobs First, a group skeptical of subsidies to private companies.
So, in the end, if am telling my opinion this may be quiet or could be super risky because the amount which is invested is not a small amount. This is a huge amount on one company and one facility.” Local governments are giving Hyundai more than $472 million in property tax breaks, though Hyundai will pay more than $357 million in lieu of taxes over a 26-year period starting in 2023.
