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.

  • KOKing Unless you're an employee (or even if you are) does anyone care where physically any company is headquartered? Until I saw this story pop up, I'd forgotten that GM used to be in the 'Cadillac Building' until whenever it was they moved into RenCen (and that RenCen wasn't even built for GM). It's not like GM moved to Bermuda or something for a tax shelter (and I dunno maybe they ARE incorporated there legally?)
  • Fred It just makes me question GM's management. Do they save rent money? What about the cost of the move? Don't forget they have to change addresses on their forms. New phone numbers? Lost hours?
  • SilverHawk It's amazing how the domestic manufacturers have made themselves irrelevant in the minds of American consumers. Someday, they'll teach this level of brand disassociation in marketing classes as an example of what "not to do". Our auto interests once revolved around these brands. Now, nobody cares, and nobody should care. Where did I put the keys to my Studebaker?
  • El scotto Will it get GM one mile closer to the Gates of Hades? This is a company that told their life long employees not to sell their stock until the day of bankruptcy.
  • 28-Cars-Later I'm curious, is the Maverick in "EV mode" when its towing?"There's still car-like handling -- no punishment because you're driving a truck." That's because its not a truck, its akin to the earlier Ranchero - a literal car-truck hybrid now with an available gasoline hybrid drivetrain (that's actually hilarious and awesome, hybrid-hybrid FTW).
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