There will be a bit of Hyundai in future electric Volkswagens

It’s an alliance that is surprising between two giants (and competitors) of the automobile. Indeed, Hyundai will assemble batteries for future generations of electric cars from the Volkswagen group. But why does the German group want to outsource this oh so important part of an electric car?

In terms of electric cars, and as reflected in our recent tests in particular, the Kia/Hyundai group enjoys a nice head start on certain competitors, starting with Volkswagen, which also offers good electric cars, but not necessarily as technically accomplished as the Korean giant.

It is perhaps no coincidence that the German group has decided to partner with Hyundai Mobisthe subsidiary of the Kia/Hyundai group, for the assembly of the batteries intended for the electric vehicles of the Volkswagen group in the factory of Navarre, in Spain., can we read on InsideEV.

Unkept promises at the origin of this decision?

This collaboration raises questions, as Volkswagen had initially considered internalizing this production despite regional financial incentives.

Volkswagen’s decision to partner with Hyundai Mobis for this task, rather than handle it internally, can be attributed to financial incentives deemed insufficient by the region. This issue sparked political confrontations between several Spanish leaders, including Javier Esparza and Maria Chivite of Spain’s Socialist Workers’ Party.

Javier Esparza recently requested a meeting with Volkswagen Navarra Plant Manager Michael Hobusch to clarify details of the project, particularly with regard to jobs and assembly operations.

Javier Esparza, president of the regionalist party UPN, underlined that the decision to entrust the assembly of the batteries to a direct competitor of Volkswagen can be perceived as “atypical” from a strategic point of view. He also criticized Maria Chivite for failing to control the situation. The Volkswagen plant in Navarre, which produces the Polo, T-Cross and Taigo models on the same line, employs more than 4,500 people and exported 91% of its production to 41 countries in 2021.

Hyundai batteries in the electric Volkswagen at 25,000 euros?

Hyundai Mobis, part of the Hyundai Group, experienced significant growth in revenue. In 2022, it exceeded 28 billion euros, exceeding initial forecasts.

This performance was highlighted by Axel Maschka, Executive Vice President of Sales at Hyundai Mobis, who also revealed “that an order for electrification components from a global car manufacturer was in progress”, when the group’s results were released a few weeks ago. Now we know who it is.

let’s remember that the Spanish site of the German group must produce a new Volkswagen model and an SUV of the Skoda brand. However, the difficulties that agitate the Volkswagen group may suggest that changes in plan cannot be ruled out.

The first elements from Hyundai should be integrated “within the group’s next generation of electric cars”, without further details. However, we can say that it will be the future Volkswagen ID.2, which will be produced in Spain, just like its SUV derivative which should be presented in 2026.

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