Unlock the White House Watch e-newsletter without cost
Your information to what the 2024 US elections imply for Washington and the world
Hyundai Motor has appointed José Muñoz, chief working officer, as the primary international chief of the world’s third-largest automaker, because the South Korean firm prepares for Donald Trump’s second presidency.
Friday’s announcement that Muñoz can be co-chief government got here as shares of native battery makers LG Energy Solution and Samsung SDI fell greater than 10% in morning buying and selling, after Reuters reported that the Trump administration would droop a $7,500 subsidy for the acquisition of an electrical car within the United States. Hyundai shares are additionally down.
The automaker additionally appointed Sung Kim, a former U.S. diplomat, as president “to higher put together for uncertainties within the world financial surroundings,” the corporate stated on Friday.
“Muñoz is appointed first non-Korean CEO of Hyundai Motor. . . (and) is anticipated to boost the corporate’s world administration methods and additional elevate its stature as a number one world model,” the corporate added.
The unprecedented appointment of a foreigner to the highest job comes amid rising concern over the incoming US administration’s menace to impose larger tariffs on international items and abolish the Inflation Reduction Act that provides battery tax credit and clear automobiles produced in-house. Hyundai and electrical car battery makers have invested closely within the United States to profit from the $7,500 tax credit score for electrical car purchases.
“Hiring international nationals is like an insurance coverage coverage as they put together for the second Trump administration,” stated Lee Hang-koo, head of the Jeonbuk Institute of Automotive Convergence Technology in South Korea. “Relations with Washington have develop into way more necessary for Korean producers as Trump plans to lift tariffs and eradicate IRA tax credit score.”
Trump has threatened to impose world tariffs of 10-20% on all buying and selling companions, however analysts stated the United States ought to revisit its free commerce pact with South Korea to impose larger tariffs on Korean automakers. Trump additionally threatened to impose 200% tariffs on automobiles imported from Mexico, the place Hyundai subsidiary Kia has a manufacturing facility.
Muñoz will be a part of the opposite two CEOs – President Euisun Chung and Lee Dong-seok – whereas present boss Chang Jae-hoon might be promoted to vp. The Spanish native is a U.S. citizen and has led Hyundai’s U.S. subsidiary since becoming a member of the automaker in 2019. He was as soon as thought of for the highest place at Japan’s Nissan Motor, following the ouster of Chairman Carlos Ghosn.
Sung Kim, former U.S. particular consultant for North Korea, will oversee world international affairs. He turned an advisor to Hyundai in January to “help Hyundai’s response to world commerce, politics and exterior networking.”
Hyundai, together with Kia, is the second largest vendor of electrical automobiles within the United States after Tesla. Hyundai invested $12.6 billion to construct an electrical car and battery cell plant in Georgia, which started operations in October, inspired by IRA provisions that intention to cut back China’s affect on the essential vitality provide chain. provide of electrical automobiles.
Tesla helps ending the $7,500 subsidy, based on the Reuters report, believing it could devastate rivals similar to Hyundai whereas having solely a slight impact by itself gross sales. Korean battery suppliers have been additionally anticipated to undergo.
“(Battery producers) are already within the crimson, not together with the tax credit they get. Their profitability will worsen additional if Trump eliminates credit when the EV market is already in disaster,” Lee stated.
