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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 govt 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 purchasing an electrical car within the US. Hyundai shares additionally edged decrease.
The carmaker additionally named Sung Kim, a former US diplomat, as its president “to better prepare for uncertainties in the global business environment”, the corporate mentioned on Friday.
“Muñoz is appointed as the first non-Korean CEO of Hyundai Motor . . . [and] is expected to enhance the company’s global management systems and further elevate its stature as a leading global brand,” 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 larger tariffs on international items and scrap the Inflation Discount Act which presents tax credit for domestically produced batteries and clear automobiles. Hyundai and electrical car battery makers have invested closely within the US to profit from the $7,500 shopper tax credit score for EV purchases.
“The hiring of foreign nationals is like an insurance policy 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 become much more important for Korean manufacturers as Trump plans to raise tariffs and eliminate the IRA tax credit.”
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 larger tariffs on Korean automakers. Trump has additionally threatened to impose 200 per cent tariffs on automobiles imported from Mexico, the place Hyundai’s affiliate, Kia, has a manufacturing unit.
Muñoz will be a part of the opposite two chief executives — chair Euisun Chung and Lee Dong-seok — whereas present chief Chang Jae-hoon shall 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-about 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 turned Hyundai’s adviser in January to “support Hyundai’s response to global trade and policy and external networking”.
Hyundai, along with Kia, is the second-largest EV vendor 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 are geared toward lowering China’s affect over the essential EV provide chain.
Tesla helps ending the $7,500 subsidy, in line with the Reuters report, believing it will devastate rivals resembling Hyundai, whereas solely having a slight impact by itself gross sales. Korean battery suppliers had been additionally set to endure.
“[Battery makers] are already in the red, excluding the tax credits they get. Their profitability will deteriorate further if Trump eliminates the credits when the EV market is already in a slump,” mentioned Lee.
