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Hyundai Motor has named chief working officer José Muñoz as the primary international chief of the world’s third-largest carmaker, because the South Korean firm gears up for Donald Trump’s second presidency.
Friday’s announcement that Muñoz can be co-chief government got here as shares in native battery makers LG Vitality Answer and Samsung SDI fell greater than 10 per cent in morning buying and selling, after Reuters reported that the Trump administration was set to finish a $7,500 subsidy for getting an electric vehicle within the US. Hyundai shares additionally edged decrease.
The carmaker additionally named Sung Kim, a former US diplomat, as its president “to higher put together for uncertainties within the international enterprise atmosphere”, the corporate mentioned on Friday.
“Muñoz is appointed as the primary non-Korean CEO of Hyundai Motor . . . [and] is anticipated to reinforce the corporate’s international administration programs and additional elevate its stature as a number one international model,” the corporate added.
The unprecedented appointment of a foreigner to the highest job comes amid rising concern over the incoming US administration threatening to impose increased tariffs on international items and scrap the Inflation Reduction Act which presents tax credit for domestically produced batteries and clear automobiles. Hyundai and electrical automobile battery makers have invested closely within the US to profit from the $7,500 shopper tax credit score for EV purchases.
“The hiring of international nationals is like an insurance coverage coverage as they brace for the second Trump administration,” mentioned Lee Dangle-koo, head of the Jeonbuk Institute of Automotive Convergence Know-how in South Korea. “Relations with Washington have grow to be rather more vital for Korean producers as Trump plans to lift tariffs and get rid of the IRA tax credit score.”
Trump has threatened to impose blanket 10-20 per cent tariffs on all buying and selling companions, however analysts mentioned the US wanted to revise its free commerce pact with South Korea to impose increased tariffs on Korean automakers. Trump has additionally threatened to impose 200 per cent tariffs on vehicles imported from Mexico, the place Hyundai’s affiliate, Kia, has a manufacturing facility.
Muñoz will be part of the opposite two chief executives — chair Euisun Chung and Lee Dong-seok — whereas present chief Chang Jae-hoon will probably be promoted to vice chair. The Spanish native is a US citizen and has led Hyundai’s US subsidiary since becoming a member of the carmaker in 2019. He was as soon as thought of for the highest place at Japan’s Nissan Motor, following the ousting of chair Carlos Ghosn.
Sung Kim, a former US particular consultant for North Korea, will oversee international exterior affairs. He grew to become Hyundai’s adviser in January to “assist Hyundai’s response to international commerce and coverage and exterior networking”.
Hyundai, along with Kia, is the second-largest EV seller within the US after Tesla. Hyundai has invested $12.6bn to construct an EV and battery cell plant in Georgia, which started operations in October, inspired by the IRA provisions which might be geared toward decreasing China’s affect over the essential EV provide chain.
Tesla helps ending the $7,500 subsidy, in response to the Reuters report, believing it could devastate rivals equivalent to Hyundai, whereas solely having a slight impact by itself gross sales. Korean battery suppliers have been additionally set to endure.
“[Battery makers] are already within the pink, excluding the tax credit they get. Their profitability will deteriorate additional if Trump eliminates the credit when the EV market is already in a stoop,” mentioned Lee.