**Hyundai and Kia Shift Focus to Hybrids Amid Uncertainty**

**Former President Threatens Inflation Reduction Act**

With the looming possibility of former President Donald Trump returning to the Oval Office, Hyundai and Kia are gearing up to adjust their strategies. Trump has threatened to scrap the Inflation Reduction Act, prompting the Korean manufacturers to rethink their battery-electric vehicle plans and shift focus towards hybrid vehicles.

**Hyundai’s Hybrid Expansion**

Hyundai Motor Group has already made a strategic decision to incorporate a hybrid line into its EV factory in Georgia. This move comes as global sales of Hyundai’s hybrid models saw a significant 17% surge in the first quarter of 2024.

**Potential Impact on U.S. Manufacturing**

The Korean manufacturers have heavily invested in U.S. manufacturing, thanks to the introduction of the Inflation Reduction Act under the current Biden administration. However, with Trump’s threat to abolish the IRA, Hyundai, Kia, and Genesis may need to realign their priorities.

**Hyundai’s Hybrid Strategy**

Hyundai is actively working on offering hybrid engines across its existing models and developing new hybrid powertrains for smaller vehicles. This strategic shift has already shown promising results, with Q2 operating profits expected to reach a record high.

**Market Trends and Analysis**

The slowdown in EV sales this year has raised concerns, especially with the potential return of Trump to power. Market analysts suggest that customers’ preferences are shifting towards hybrid cars, with typical hybrid car sales surging by 32.5% in comparison to EV sales decline.

In conclusion, Hyundai and Kia are adapting their strategies to navigate the uncertainties ahead, focusing on hybrids to mitigate risks and capitalize on changing market trends.