Kia Sportage Hybrid Starts US Production at Georgia Metaplant: 15% Tariff No Longer Applies
Kia began producing its Sportage Hybrid SUV in Georgia on June 2, 2026, avoiding a 15% U.S. tariff on South Korean-built vehicles, marking the first Kia-branded and hybrid model made at Hyundai Motor Group’s Metaplant America. The move follows a 28.3% drop in Kia’s 2025 operating profit due to tariffs, with the Sportage Hybrid’s U.S. assembly eliminating $2.2 billion in annual duties and reshaping Kia’s strategy for its lineup, including delaying the EV6 GT for the U.S. market.
Kia launched production of its Sportage Hybrid SUV in the U.S. on June 2, 2026, at Hyundai Motor Group’s Metaplant America in Ellabell, Georgia. This marks the first Kia-branded vehicle, first hybrid model, and third overall vehicle produced at the plant, following the Hyundai Ioniq 5 and Ioniq 9. The event included Georgia Governor Brian Kemp, Kia North America CEO Seungkyu Yoon, and Hyundai’s Tony Heo, with the first Sportage Hybrid driven onto the stage by an autonomous mobile robot. The decision to assemble the Sportage Hybrid in Georgia eliminates the 15% U.S. tariff on South Korean-built vehicles, a move driven by financial pressure. U.S. tariffs, which peaked at 25% before dropping to 15% in November 2025, cost Kia $2.2 billion in 2025 operating profit, contributing to a 28.3% year-over-year decline. Kia cited a potential $5 billion future tariff burden as a key reason for the shift, as the Sportage Hybrid is its top-selling U.S. model, with hybrid sales surging 23.7% globally in 2025. The tariff impact has already altered Kia’s U.S. strategy. The 2026 EV6 GT, built in South Korea, was delayed indefinitely for the U.S. market due to the 15% duty making it unprofitable. Meanwhile, U.S. hybrid sales for Kia rose 51% year-over-year in the first quarter of 2026, reaching over 42,000 units. Metaplant America’s production system is notable for its flexibility. Unlike traditional plants requiring months of retooling to switch between powertrain types, the facility uses a Software-Defined Factory (SDF) system. This cell-based, mixed-model approach allows hybrid and electric vehicles to be built on the same line without dedicated conveyor systems, scaling production to 500,000 units annually. The system was first tested at Hyundai’s Innovation Center in Singapore before being implemented in Georgia.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.