Hyundai CEO Jose Munoz on Auto Tariffs, US Investment, and Pricing Strategy

Hyundai's US Market Commitment

• 🎯 Hyundai Motor Company is the third-largest OEM globally and views the USA as its most important market.
• 🚀 The company has factories in Alabama and Georgia, with a new plant in Savannah increasing production by 500,000 cars, aiming to produce 1.2 million vehicles annually in the US.
• 💡 Hyundai is making a significant $21 billion investment in the US over the next five years, focusing on increasing capacity, supply chain localization, and new technologies like green steel and EV tools.

Navigating Trade and Tariffs

• ⚠️ Hyundai decided to invest in its new Savannah plant during the first Trump administration, demonstrating a long-term commitment beyond short-term incentives.
• 🤝 The company prefers free trade for its global business but is committed to navigating the current trade landscape and tariffs.
• 🛡️ To reassure customers, Hyundai implemented a customer assurance program guaranteeing prices would not increase through June 2nd, with future pricing evaluated based on market conditions.

Supply Chain and Competition

• 🇺🇸 Hyundai produces approximately 40% of its cars sold in America within the US; the rest primarily comes from South Korea.
• 🗣️ The company participates in the Alliance for Automotive Innovation to convey industry needs to the government.
• ⚖️ Hyundai aims for a level playing field to compete effectively and maintain competitiveness, focusing on delivering safe, high-quality products with good features.

Competitive Strategy Amidst Tariffs

• 📈 The dynamic of managing costs and pricing is not new, but tariffs present an additional short-term burden.
• 🌍 Hyundai's strategy involves localization and increased investment in the US to mitigate the impact of tariffs.
• 💰 While competitive pricing is a priority, Hyundai will evaluate opportunities for minor price adjustments or reduced incentives based on market reactions, but does not plan to remove models due to tariffs.