by Hyundai’s global localization strategy aims to mitigate future policy changes and tariff duties.
The brand is investing $12.6 billion in electric and hybrid vehicle manufacturing in the United States.
CEO Jose Munoz emphasizes the importance of long-term investment strategies.
Threats of large tariffs for many automakers in the automotive industry are prompting brands to seek ways to minimize the impact. Some, like Honda, reportedly plan to relocate some. Others, like Hyundai, seem to be ahead of the game and undeterred by the next steps.
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During Trump’s first presidency, the Motor Group decided to make massive investments in the electric vehicle business in the United States, and this decision may now start to bear fruit. During a recent annual general meeting in South Korea, CEO Jose Munoz confirmed that the brand’s ‘localization strategy’ will help ‘reduce the impact of any potential policy changes.’
Hyundai’s Successful Move
This was the first time Munoz addressed Hyundai’s shareholder meeting since taking the helm of the firm on January 1st. His sentiment echoed a statement he made just days after his first working day as CEO, where he said the relationship between President Trump and Elon Musk ‘would be positive for the industry.’
Last year, Hyundai commenced production of the fully electric Ioniq 5 at its vast ‘Metaplant’ in western Georgia, approximately two years after construction began on the facility. This plant will produce five more electric vehicles under the Hyundai, Kia, and Genesis brands. And not only that, but in May last year, Munoz disclosed that the plant would also be adapted for hybrid vehicle production.
A $12.6 Billion Bet
Hyundai is investing roughly $12.6 billion in production and battery plants across Georgia. During a speech about these investments earlier this year, Munoz confirmed that they were not made due to the Inflation Reduction Act under President Biden, or any other incentives.
‘It is not good policy to just make an investment because of incentives, as they can come and go,’ he said. ‘We believe that the American market is the most important for us today, and it will continue to be the most important in both absolute and growing aspects, so investment and localization is a good strategy. I believe that today we are in a better place than we were four or five years ago.’
