Hyundai’s metaplant jobs commitment clarified following grand opening confusion

Just how many direct jobs has Hyundai committed to bringing to the Savannah region? And how many are officially connected to the Korean car manufacturer versus the many on-site affiliate suppliers? Even those making official statements have had trouble keeping the numbers straight.

At the Hyundai Motor Group Metaplant America (HMGMA) Grand Opening on March 26, President and Chief Executive Officer of Hyundai Motor Company José Muñoz shared that Hyundai planned to increase direct jobs to 14,000. His statement appeared to imply that the job commitment update correlated to the announcement that the metaplant would increase production from 300,000 units to 500,000.

Assistant Manager of Public Relations Bianca Johnson wrote to the Savannah Morning News (SMN) via email on April 3 to “correct media statements to avoid any misstatements in the future.” She addressed the jobs numbers and the reporting of another statement made by Muñoz during the Grand Opening regarding a second electric vehicle (EV) battery plant being built for the Bryan County megasite.

Hyundai has clarified that it has entered into two joint venture battery plant projects as follows:

• One on the Bryan County Megasite in partnerships with LG Solutions, which is referred to as HL-GA Battery Company

Regarding the jobs numbers, a Hyundai press release from March 24 stated that it would create 14,000 direct jobs across the entire U.S., not just Georgia. Some of the additional jobs may eventually include roles related to HMGMA’s increased production, though when it plans to meet those goals and how many additional jobs may be added remain in development at this time.

HMGMA Head of Communications Joe LaMuraglia noted that the company is still in start up mode and will soon begin hiring Meta Pros (its name for its employees) for the second shift to work toward increasing unit production.

Hyundai’s current jobs commitment clarified

Some of the confusion about jobs numbers following Muñoz’s statements to a press pool on March 26 was elevated due to a another corporate Hyundai press release dated March 26. The release stated that, “The Group’s investment in Georgia related to HMGMA and joint battery ventures with LG Energy Solution and SK undefined is $12.6 billion. This represents the largest single investment in the state’s history and includes a total of 8,500 jobs at HMGMA by 2031.”

SK On’s job numbers do not factor into the 8,500 jobs slated for Bryan County megasite as described by Hyundai’s economic development agreement with Georgia. Additionally, HMGMA alone is not responsible for all 8,500 jobs. On site affiliates are also expected to factor into the job commitment total.

While HMGMA does not oversee hiring at its affiliate organizations, the economic agreement indicates that HMGMA will be responsible for compiling and reporting the annual job numbers for the entire megasite.

Savannah Economic Development Authority (SEDA) President Trip Tollison confirmed that, starting in 2031, those numbers are to be reported to the Savannah/ Interstate-16 Corridor Joint Development Authority (Savannah JDA) and Georgia Department of Economic Development. The technical term is “project verification.”

HMGMA Chief Administrative Officer Brent Stubbs and other officials had stated at the grand opening that the plant itself will hire roughly 2,600 employees, though it could potentially be more as a result of the increased production announcement.

On-site affiliate HL-GA Battery Company has committed to creating 2,000 jobs while Hyundai Mobis has projected hiring another 1,578 according to the Savannah JDA’s Announced HMGMA Suppliers webpage.

LaMuraglia said that HMGMA does not know the hiring projections for either Hyundai Glovis or Hyundai Transys, though the two affiliates should account for roughly 620 to 2,320 jobs that would round out the total jobs commitment for the megasite.

Neither Transys or Glovis representatives responded to inquiries made prior to publication.

Here is a breakdown of the numbers:

Company by Amy Condon

As a point of clarity, 6,800 total jobs on the megasite with an average annual salary of $58,105 is 80% of the full 8,500 commitment, which is the threshold that HMGMA and its on-site affiliates must reach by 2031 in order to comply with the economic development agreement terms.

The jobs multiplier affect

Hyundai’s latest U.S. investments also aim to expand partnerships with U.S. companies working on autonomous driving, robotics, AI, and logistics, among other areas.

Johnson shared that the investment includes improvements to Hyundai Motor Manufacturing Alabama and Kia Georgia. Portions of the $21 billion will also go toward the construction of a Louisiana steel mill, where Hyundai plans to annually produce 2.7 million tons of steel.

In addition to Hyundai’s 14,000 direct jobs, the March 26 press release notes that all of the automaker’s investments would result in about 100,000 direct and indirect jobs.

LaMuraglia said the number is likely based on a Center for Automotive Research (CAR) May 2023 report. The report reads, “for every 1 Hyundai U.S. job it will generate 7.3 other jobs.” The CAR report says “spin-off or expenditure-induced employment—the jobs supported by the HMA [Hyundai Motor America] employees and suppliers’ workers who spend their earnings in the economy” account for indirect jobs.

The idea behind the job multiplier is that nearly every sector, from the service industry and public safety to education and healthcare, would need to increase to meet demands and needs of the new manufacturing workers and the communities in which they will live.

For example, St. Joseph’s/Candler just opened a new care facility in Ellabell across I-16 from the metaplant to accommodate its employees and their families. Also related, last summer Augusta University’s Medical College of Georgia opened a four-year Savannah location at Georgia Southern University’s Armstrong Campus to help address the healthcare shortage in the region as well as throughout the state.

Joseph Schwartzburt is the education and workforce development reporter for the Savannah Morning News. You can reach him at [email protected] and JoeInTheKnow_SMN on Instagram.

This article originally appeared on Savannah Morning News: Hyundai officials set record straight on jobs commitment number