LOS ANGELES – José Muñoz, just tapped as the next chief executive of Hyundai Motor Co., says the current market uncertainty surrounding Donald Trump’s return to the White House and Chinese automakers’ aggressive marketing offer South Korea’s top automaker a new growth opportunity.
“Throughout my decades of work experience in the auto industry, I’ve never seen a market volatility like this. However, I see this as a significant opportunity for Hyundai,” he told Korean reporters on the sidelines of the LA Auto Show 2024 on Thursday.
He said Hyundai has a corporate culture of “pali, pali,” just like the overall Korean culture, which means “quickly, quickly” in English.
“If we plan ahead and at the same time maintain a very strong pali pali spirit, we can take advantage (of the market conditions) better than others. This is a very big strength of Hyundai and also Koreans in general,” he said.
Currently Hyundai Motor’s global chief operating officer and head of North and South American operations, Munoz was named last week to succeed Chang Jae-hoon as Hyundai Motor’s first non-Korean CEO.
Munoz will assume his new role on Jan. 1.
TECHNOLOGICAL SUPERIORITY OVER CHINESE RIVALS
Munoz said Hyundai would respond to the aggressive competition from Chinese electric vehicles with “technological superiority and unparalleled service.”
“Our China strategy is simple. We will build smarter vehicles and offer the best services to our customers.”
The incoming Hyundai CEO said Hyundai plans to strengthen its “FBB Strategy,” which has emphasized to dealers in the Americas, to better compete with Chinese rivals.
FBB stands for fewer (costs), bigger (scale) and better (quality), according to him.
EV IS THE WAY TO GO, BUT HYBRID ALSO IMPORTANT
His appointment as Hyundai’s global CEO comes as the Korean carmaker braces for heightened uncertainties surrounding the new Trump administration.
Having spent 10 years as the head of Hyundai’s and Nissan Motor’s American operations, Munoz is a “US-savvy CEO,” industry watchers said.
At the LA Auto Show, he said Hyundai is ready to tackle potential risks associated with the new Trump administration such as the likely elimination of EV subsidies and higher tariffs.
Analysts said Hyundai Motor Group, which includes Hyundai Motor, Kia Corp. and premium brand Genesis, is expected to ramp up its US production as the Trump administration is expected to impose 10% to 20% tariffs on imported cars.
Asked about media reports that HMGMA may not qualify for subsidies, he said, “The plant was not built with incentives in mind. It was established because the US has always been our most important market.”
Hyundai operates a plant in Alabama, which has an annual production capacity of 370,000 units. Its newly completed EV-dedicated plant in Georgia, Hyundai Motor Group Metaplant America (HMGMA), is capable of producing 300,000 units annually.
The 59-year-old US citizen stressed the importance of flexibility.
“While the electrification trend will continue, hybrids may play a bridging role. Both the Alabama plant and HMGMA will adapt to market demand, producing internal combustion engines, hybrids and EVs as needed,” he said.
TO SPEND MORE TIME IN KOREA AS CEO
He said Hyundai will strengthen its partnerships with General Motors Co. and WayMo LLC.
In September, Hyundai and GM agreed to jointly develop new vehicles and source raw materials for clean-energy cars in line with US efforts to ward off the rise of Chinese rivals amid an EV market slowdown, dubbed the “EV chasm.”
In October, the Korean carmaker forged a multi-year strategic partnership with Waymo, a unit of Alphabet Inc., to jointly develop a Level 4 autonomous vehicle based on Hyundai’s all-electric crossover SUV, the IONIQ 5.
Munoz said Hyundai Motor Group Chairman Chung Euisun asked him if he could spend more time working in Korea once he assumes the new role.
The new Hyundai Motor CEO responded that he plans to work 70% of his time in Korea and 30% in the US and other countries.
By Jae-Fu Kim
hu@hankyung.com
In-Soo Nam edited this article.
