LAS VEGAS — Hyundai Mobis Co., the world’s fifth-largest auto parts maker, plans to strengthen its US production to cope with President-elect Donald Trump’s trade protectionism with the possible imposition of new tariffs.
Hyundai Mobis Executive Vice President Axel Maschka told reports on Thursday at CES 2025, the world’s largest technology trade show in Las Vegas, that the new US administration is likely to force companies to manufacture products in the country.
The unit of South Korea’s top automaker Hyundai Motor Group plans to expand US production bases and procure components from local contractors, Maschka said.
He declined to comment on investment plans, saying the new government 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 third-largest automaker, is considering building the conglomerate’s first overseas steel mill in New Orleans, Louisiana, to cope with Trump’s protectionist policies in his second term.
TO REDUCE 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.
Hyundai Mobis unveiled a goal to boost non-Hyundai Motor Group affiliate sales to 40% of its total revenue by 2033 from the current 10% in last November.
The company was estimated to have won some $9.2 billion in orders from global automakers excluding Hyundai Motor and Kia last year, compared to just $1 billion in 2001, Maschka said.
The company is even mulling officially dropping “Hyundai” from its name as global carmakers had been reluctant to place orders to the unit of Hyundai Motor Group, according to industry sources in Seoul.
INNOVATIVE TECHNOLOGY, CUSTOMIZED MARKETING
Maschka was confident that Hyundai Mobis would achieve the target, based on its innovative technology and customized marketing strategies for each country.
Hyundai Mobis unveiled its holographic windshield display technology, which transforms the vehicle’s front windshield into a transparent display, at CES 2025. Maschka expected the technology jointly developed with German optical company ZEISS to ramp up overall sales.
Hyundai Mobis also plans to secure a 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 limited conditions and does not require safety operators in the front seat. It is just shy of Level 5, which enables fully automated driving.
Maschka said Hyundai Mobis plans to take different approaches to expand in each market.
The company is set to meet demand from Chinese customers, which focus on in-vehicle experiences while offering cheaper products in developing countries such as India, Indonesia and Brazil, he said.
By Jong-Hwan Won
won0403@hankyung.com
Jongwoo Cheon edited this article.
