Tag Archives: Hyundai

More Good Economic News

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On Wednesday, The Daily Energy Insider reported that Entergy Louisiana is planning to increase energy production in Louisiana in anticipation of the steel manufacturing facility that Hyundai Steel Company (HSC) is building in Louisiana. This is what happens when tariffs are put in place–there is a positive trickle-down effect.

The article reports:

Entergy Louisiana is planning major transmission projects on the Westbank of the Mississippi River and in south central Louisiana that provide additional load-serving capacity for new economic development projects, such as the $5.8-billion new manufacturing facility announced Monday by Hyundai Motor Group.

Such transmission projects, which include significant new high-voltage transmission lines, will enable Entergy Louisiana to serve major new developments like Hyundai’s and improve service reliability to all of its customers, according to the utility.

“This historic investment will help set up Louisiana for long-term economic success, creating thousands of high-quality jobs and positioning our state as a leader in next-generation, low-carbon steel production,” said Entergy Louisiana President and CEO Phillip May. “Partnerships like this between industry leaders, elected officials, local communities, and economic development partners are critical to driving transformative projects that benefit future generations.”

The ultra-low carbon steel production plant will be located on roughly 1,700 acres in Donaldsonville, La., anchoring the RiverPlex MegaPark on the Westbank of the Mississippi River in Ascension Parish.

Hyundai Steel Company (HSC), a member of Hyundai Motor Group, is expected to create more than 1,300 direct new jobs with an average salary of $95,000. Louisiana Economic Development estimates the project will result in about 4,100 indirect new jobs, for a total of 5,400 potential new jobs in the region.

“Entergy Louisiana is proud to support Hyundai Steel Company with the reliable, sustainable energy solutions needed to power such an ambitious and forward-thinking facility,” May said. “Together, we are building a stronger, more sustainable future for our state.”

This is wonderful news. Among other things, it further distances Hyundai from any problems that may occur between North and South Korea. It provides jobs and income for people in Louisiana and will have a positive impact on their tax rate. In January 2025, the Louisiana unemployment rate was 4.5, ranking 40th among the states. I expect that to change as the Hyundai steel plant is being built and after it is built.

Remembering The Yugo

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On Tuesday, Issues & Insights posted an article titled, “EVs Are The Yugo Of The 21st Century.” I think they are on to something.

The article reports:

Way back in the mid-1980s, communist Yugoslavia exported the Yugo, a compact car that sold for around $4,000. It was so poorly made that bumping into a pole at 5 mph could total it.

Fast forward to today, and a new class of cars has a similar problem. A minor accident can cause a total loss, even if the car’s been driven only a few miles. The only difference is that these cars aren’t cheap imports from some godforsaken socialist state. These are state-of-art electric vehicles that come with an average sticker price of $55,000.

Why are insurance companies totaling low-mileage EVs that have been in a fender bender? For the same reason you could total a new Yugo when backing out of a parking spot. The cost of repair is exorbitant.

As Reuters reported recently, “For many electric vehicles, there is no way to repair or assess even slightly damaged battery packs after accidents,” which means the only viable option is to replace the battery, which represents about half the cost of the car.

The article notes:

A replacement battery for a $44,000 Tesla Model 3 can cost up to $20,000.

One expert told Reuters that Tesla’s Model Y has “zero repairability” because its battery is built into the structure of the car.

The article concludes:

EV advocates say not to worry. Car makers, they say, are designing batteries to be more modular and replaceable. They promise that repair costs will eventually come down, and all will be well.

Maybe so, but that’s why force-feeding this technology is so reckless.

In a normal market, carmakers would work out such kinks before mass producing a vehicle, much less converting their entire fleets over to a new and relatively untested technology. If they couldn’t resolve problems of affordability, reliability, and repairability to consumers’ satisfaction, automakers would scrap the effort and move on to something else.

But our elites think they know better. And they want new cars to be 100% electric within a decade. So, carmakers feel like they have little choice but to plow ahead.

Which brings up another way that today’s EVs are like the Yugos of yesteryear.

One auto critic said of the Yugo that it “had the distinct feeling of something assembled at gunpoint.”

That was probably literally true in the case of the Yugo. But it is essentially the situation with EVs today. Consumers aren’t banging on dealership doors demanding EVs. Ford reported last week that its e-car division is losing billions of dollars a year.

Car companies are pouring money into electric cars only because the government is holding a gun to their heads, saying build EVs or die.

About the same time the Yugo came out, the first Hyundai arrived in America. My husband and I bought the first Hyundai that arrived in New England. Hyundai was made in a free country under the free market; Yugo was made in a communist country where free enterprise was not the way things were done. Hyundai is still going strong. My husband actually drives a Hyundai today. Where is the Yugo?