Donald Trump’s second presidency is expected to herald major policy changes for U.S. auto production including a likely pullback of federal support for electric vehicles, the elimination of President Joe Biden’s tougher fuel-economy rules and tariffs that could significantly raise the prices of some auto parts. But Jose Muñoz, who takes over as Hyundai Motor’s global CEO in January, says the Korean auto giant is ready for whatever lies ahead.
“Don’t forget, we made the decision to invest in America during the previous Trump administration,” he told Forbes, noting that he thinks it’s unwise to let policy changes made by a single government dictate the business strategy of a global company. That investment became the $5.5 billion auto and battery plant the Seoul-based automaker opens in Savannah, Georgia, next year, one that will double its U.S. production capacity. “For the long run, we still believe EV is the technology that is going to prevail.”
And should Trump eliminate the current $7,500 federal rebate for EVs created by the Inflation Reduction Act (IRA) – which Hyundai’s new Georgia-built models would likely receive – the company will adapt, Muñoz said.
“The other thing we decided, also well before Trump won the election, was that we wanted the plant to be not only for EVs but also producing hybrids and plug-in hybrids,” he explained. “So I’m happy we took those decisions because if you imagine that there’s going to be no IRA, that will probably mean fewer sales of EVs, but potentially more sales of hybrids.”
Muñoz becomes Hyundai Motor CEO and president on Jan. 1, 2025. The 59-year-old Spaniard with a PhD in nuclear engineering is currently its global COO and president. He spoke with Forbes while in Los Angeles to unveil the new Hyundai Ioniq 9, a three-row, six-passenger electric SUV with 300 miles of range per charge. It goes on sale early next year, likely priced above $60,000, and will be built at the Savannah plant.
Hyundai, like most automakers in the U.S., has poured billions of dollars into new plants and battery lines to ramp up production of electric vehicles and meet both federal fuel economy rules and demands for zero-emission autos from California, which wants to end sales of new gasoline cars by 2035. While that target may not be met, the industry’s shift to EV is driven by other strong forces as well, particularly the need to better compete with Chinese carmakers like BYD, now the world’s top producers of battery-electric autos.
The Hyundai Group, which includes the Hyundai brand, its luxury Genesis line and subsidiary Kia Motors, has rapidly boosted EV sales in the U.S. in the past few years, becoming the second-biggest seller behind only Tesla this year. That said, in the first three quarters of 2024 it sold just 89,589, compared with Tesla’s 471,374.
Should Trump also make good on his plan to ratchet up tariffs on all imported goods, including auto parts and materials, Muñoz is optimistic that Hyundai’s investment in affiliated parts makers in the U.S. like Mobis and its battery ventures with Korea’s LG Chem and SK will help it weather that impact.
“It’s difficult to localize more than what we’ve done,” he said. “We are already on a very fast localization speed. For tariffs, I think that’s best, localizing batteries, components and the assembly.”
Hyundai’s willingness to keep investing in U.S. operations is simple: it’s become a top source of global revenue. “We continue to believe America is the most important market for our company. It has been over the last six years and will continue to be.”
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