Hyundai's new CEO Munoz vows to proactively respond to Trump policy

LOS ANGELES – José Muñoz, the incoming chief executive of South Korea's top automaker Hyundai Motor Co., said on Thursday the company is ready to tackle potential risks associated with the new Trump administration such as the likely elimination of EV subsidies and higher tariffs.

“We are prepared to address all regulations,” he said during a press briefing on the sidelines of the LA Auto Show 2024. “The US is the most important market for us.”

Currently Hyundai Motor’s global chief operating officer and head of North and South American operations, Munoz was named last week to succeed Chang Jae-hoon as the Korean automaker’s first foreign CEO.

Munoz will assume his new role on Jan. 1.

His appointment comes as the Korean carmaker braces for heightened uncertainties surrounding Donald Trump's return to the White House.

Having spent 10 years as the head of Hyundai's and Nissan Motor’s American operations, Munoz is a "US-savvy CEO,” according to industry watchers.

Analysts said the new Hyundai CEO likely reviewed potential scenarios under the Trump era and has devised strategies to cope with rising uncertainty.

APPEARED AT LA AUTO SHOW DRIVING IONIQ 9

Munoz, a 59-year-old US citizen, arrived at the auto show driving Hyundai's first large electric SUV, the IONIQ 9.

The previous day, he premiered the IONIQ 9 in LA while unveiling his plan to produce the latest model at both Hyundai’s main plant in Korea and the new US plant in Georgia, Hyundai Motor Group Metaplant America LLC (HMGMA).

"We plan to invest $90 billion (worldwide) to increase our annual sales from 4.15 million units (globally) last year to over 5.5 million units by 2030. We aim to expand our EV lineup to 21 models by 2030 and achieve annual EV sales of over 2 million units,” he said.

Analysts said Hyundai Motor Group, which includes Hyundai Motor, Kia Corp. and premium brand Genesis, is expected to ramp up its US production as the Trump administration is expected to impose 10% to 20% tariffs on imported cars.

Asked about media reports that HMGMA may not qualify for subsidies, he said, "The plant was not built with incentives in mind. It was established because the US has always been our most important market."

PARTNERSHIPS WITH GM, WAYMO

As for Hyundai’s recent cooperative agreements with General Motors Co. and WayMo LLC, Munoz described the deals as "big initiatives" that will shape Hyundai's future.

In September, Hyundai and GM agreed to jointly develop new vehicles and source raw materials for clean-energy cars in line with US efforts to ward off the rise of Chinese rivals amid an EV market slowdown, dubbed the “EV chasm.”

In October, the Korean carmaker forged a multi-year strategic partnership with Waymo, a unit of Alphabet Inc., to jointly develop a Level 4 autonomous vehicle based on Hyundai’s all-electric crossover SUV, the IONIQ 5.

Despite the temporary slowdown in the EV market, Munoz said Hyundai plans to maintain its EV-focused strategy.

"Chairman Chung Euisun has established a clear direction for Hyundai, and since the existing strategy has worked well, we won’t make any drastic changes to it,” he said.

HYUNDAI, KIA SHOWCASE AT LA AUTO SHOW

At the LA Auto Show, Hyundai Motor Group showcased more than 40 models, including the IONIQ 9; the Hyundai Initium, a hydrogen fuel cell EV (FCEV); Kia’s EV9 GT: and an updated version of the Genesis GV70 SUV.

Hyundai plans to launch the IONIQ 9 in early 2025, starting in Korea and later in select markets such as the US and Europe.

Last month, the company unveiled the Initium, a new FCEV concept, previewing its next-generation design language for a hydrogen-powered crossover to debut in the first half of 2025.

The Initium, a Latin word meaning "beginning" or "first," is the successor to Hyundai’s first mass-produced FCEV Nexo crossover sporting across-the-board improvements in range, efficiency and power.

At the auto show, Kia unveiled the high-performance version of its flagship EV9 electric SUV.

The EV9 GT features a 160-kilowatt front motor and a 270-kilowatt rear motor, delivering a maximum output of 508 horsepower.

Kia also showcased revamped versions of the EV6 and Sportage SUVs, both of which made their North American debuts.

Genesis premiered its updated electrified GV70 model at the show.

Write to Young Chan Song and Jae-Fu Kim at 0full@hankyung.com
In-Soo Nam edited this article.