Upcoming tariffs have much of the car industry spooked, but apparently not Hyundai’s CEO Jose Munoz. According to Bloomberg, Munoz told investors he’s not too worried about the impact of tariffs because the company has made so many investments in US manufacturing. He said they should “help mitigate the impact of any potential policy change.”
Hyundai
Hyundai Motor Company was founded in 1967 by Chung Ju-yung, 20 years after the birth of the Hyundai Engineering and Construction Company. The automotive marque’s first model was the Cortina, birthed with the help of Ford in 1968, while its first self-developed car arrived the year after as the Pony. Since then, the company has found success with affordable cars and has consistently become known for reliability and value. Nowadays, its ventures vary from combustion, hybrid, all-electric, and hydrogen mobility solutions to robotics.
- Founded
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29 December 1967
- Founder
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Chung Ju-yung
- Headquarters
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Seoul, South Korea
- Owned By
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Hyundai Motor Group
- Current CEO
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Jae-Hoon Chang
Hyundai’s Investing In Georgia
Much of Hyundai’s American investment is going to its facility in Georgia. The Hyundai Metaplant is now producing the Ioniq 5, and it will eventually be joined by the Ioniq 9. In fact, Ioniq 9 production should begin quite soon, as Hyundai had planned for US production to start this quarter, with deliveries starting in the second quarter. Not only that, but Bloomberg reports that Hyundai has plans to add hybrid production, as well as joint-venture battery manufacturing capabilities at the Georgia site with SK On and LG Energy Solution.
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One benefit Hyundai likely planned on receiving by producing Ioniq models in Georgia was getting those models to qualify for the $7,500 federal tax credit on US-built electric vehicles. While it hasn’t been eliminated yet, the Trump administration has made it clear it would like to get rid of it. Still, with tariffs coming for vehicles built in Canada and Mexico, and perhaps additional countries, these models might be able to avoid cost increases.
Hyundai Motor Company Builds Many Other Cars In The American South
In the mid-2000s, Hyundai set up its first factory in Alabama. The assembly lines there make the Hyundai Santa Cruz, Santa Fe, and Tucson. Genesis even produces the GV70 and its electric counterpart there. Of the three Hyundais, the Tucson is Hyundai’s best-seller in the US, and the Santa Fe is third-best. Genesis doesn’t publicly share its sales results, but being a luxury SUV, the GV70 is likely one of its better sellers. As such, it’s important that those models are insulated from any negative effects of tariffs.
The factory also has engine manufacturing facilities. Employees build turbocharged and naturally aspirated 2.5-liter four-cylinder engines, naturally aspirated 2.0-liter four-cylinders, and turbocharged 1.6-liter four-cylinders. These engines are used both by Hyundai, as well as Kia.
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Kia’s engines are used at the brand’s factory in Georgia where it builds the Sportage, Telluride, and Sorento. Each is the best-, third best-, and fourth-best selling models for that brand. The factory will also be adding EV9 production. With so many big sellers being built in America, you can start to see why Munoz is feeling more comfortable than some other car executives.
Source: Bloomberg
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