Hyundai Mobis to boost US production to cope with Trump

LAS VEGAS -- Hyundai Mobis Co., the world’s fifth-largest auto parts maker, plans to beef up its US production to cope with President-elect Donald Trump’s trade protectionism and possible imposition of new tariffs.

Hyundai Mobis Executive Vice President Axel Maschka told reporters on Thursday at CES 2025  that the new US administration will likely force companies to manufacture goods in the country. CES is the world’s biggest technology trade show, held in Las Vegas each year. 

The Hyundai Motor Group unit plans to expand its US production bases and procure parts from American contractors, Maschka said.

He declined to discuss investment plans, however, saying that the incoming US administration has yet to unveil policy details.

Trump, who takes office on Jan. 20, has vowed to impose steep new taxes on trade, including tariffs of 10-20% on all imports.

Hyundai Motor Group, the world’s No. 3 automaker, is considering building its first overseas steel mill in New Orleans, Louisiana, to cope with Trump’s protectionist policies as he returns to the White House for a second term.

TO LESSEN RELIANCE ON HYUNDAI MOTOR, KIA

Maschka reiterated Hyundai Mobis’ plan to rely less on the group’s two carmakers, Hyundai Motor Co. and Kia Corp.

In November, Hyundai Mobis announced a goal to boost non-Hyundai Motor Group affiliate sales to 40% of its total revenue by 2033 from the current 10%.

The company was estimated to have won some $9.2 billion in orders last year from global automakers other than Hyundai Motor and Kia, compared with $1 billion in 2001, Maschka said.

The company is even mulling dropping “Hyundai” from its name as global carmakers have been reluctant to place orders with the Hyundai Motor Group unit, according to industry sources in Seoul.

INNOVATIVE TECHNOLOGY, CUSTOMIZED MARKETING

Maschka was confident that Hyundai Mobis would achieve its target through innovative technology and marketing strategies customized to each country.

At CES 2025, Hyundai Mobis unveiled holographic windshield display technology that transforms a vehicle’s front windshield into a transparent display. Maschka said he expected the technology, jointly developed with the German optical company Zeiss, to ramp up overall sales.

Hyundai Mobis also plans to secure Level 4 autonomous vehicle technology through co-investments with Motional, Hyundai Motor Group’s self-driving joint venture with Aptiv PLC, said Maschka.

At Level 4, a vehicle can drive itself under certain conditions and does not require safety operators in the front seat. It is just below Level 5, which allows for fully automated driving.

Maschka said Hyundai Mobis plans to take different approaches to expanding in each market.

The company is prepared to meet demand from Chinese customers, who focus on in-vehicle experiences, while offering lower-cost products in developing countries such as India, Indonesia and Brazil, he said.

Write to Jong-Hwan Won at won0403@hankyung.com
 
Jongwoo Cheon edited this article.