Hyundai Reassures Dealers as Battery Shortage Adds Dark Clouds to Kona Electric Launch

Steph Willems
by Steph Willems

By all accounts, the Hyundai Kona Electric is a zippy little crossover endowed with surprising range and the same basic utility as its gas-powered sibling, minus the whole all-wheel drive thing. However, a battery shortage afflicting the Korean automaker has added uncertainty to a model arriving on American shores this year.

Will it actually show up when a customer wants one?

Don’t worry about that, Hyundai’s telling dealers. There’s a plan to get Kona Electrics to America.

As reported by Wards Auto, Mike O’Brien, vice-president of product planning for Hyundai Motor America, recently travelled to the automaker’s HQ to ensure supply would be met. He was told that production of the 258-mile vehicle, already a hit in Europe, would get a boost.

“Our top management simply told us, ‘We’re going to make sure you have enough.’ So we’re going to be all-in on the Kona EV,” O’Brien said. The plan is for EV-hungry California to serve as the first recipient of the subcompact crossover. Shortly after that, the Kona Electric arrives in U.S. states that conform to California’s zero-emission vehicle mandate. The automaker has ordered the installation of three charging plugs at dealers in those states.

While ZEV jurisdictions remain the company’s chief focus, Hyundai claims that any buyer who pays for a Kona Electric, regardless of location, will get one.

It’s hard to gauge demand for the vehicle. In Norway, a country that snaps up EVs like it’s its job, 20,000 orders for the Kona Electrics turned into 7,000 sold orders, Wards Auto reports. The company has already pushed up its production forecast once. While this increase in anticipated demand ran head-on into an existing lithium-ion battery shortage, Hyundai says it has a second supplier ready to deliver the cells.

“Battery capacity is a bottleneck, but we’re working that out right now,” O’Brien said “We’re very fortunate one of our sister companies is helping us with that. So that’s going to help us a lot in terms of being able to respond rapidly to the market.”

The publication notes that Enercell, Hyundai Motor Group’s only battery subsidiary, does not build lithium-ion batteries, adding a bit of mystery to the issue. Other companies in the Hyundai supply chain have the capability, but aren’t members of the group.

[Image: Hyundai]

Steph Willems
Steph Willems

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  • SCE to AUX SCE to AUX on Nov 15, 2018

    "So we’re going to be all-in on the Kona EV" Building a compliance car is the definition of *not* being all-in.

  • Darex Darex on Nov 15, 2018

    I love that paint scheme in the picture above. It's identical to my MINI Cooper's "Moonwalk Grey" and black. Even now, it still looks awesome to me. Really tasteful.

  • Lorenzo They were willing to go against their customers' preferences to satisfy government, but now that they see it doesn't pencil out, they change their tune. Now is the time to tell 'em what we really want.
  • Tassos Generally I prefer that exploited labor remain domestic like in the service and trade industries. Given the complex and global integration of supply chains and materials sourcing I accept that most manufacturing must be managed by foreign 'kapos'.
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  • Chuck Norton Toolguy- I have. It's hard on the knees...
  • EBFlex Welp the corpse is at it again. They think they can buy votes by selling off from the SPR. The best thing they could do to get votes is close the border and start deporting people. That would guarantee them a win in November. As of right now though, they are not doing that and Trump is rising in the polls every day.
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