Hyundai Motor appoints first non-Korean CEO as IRA's demise complicates overseas expansion

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Hyundai Motor appoints first non-Korean CEO as IRA's demise complicates overseas expansion

Published: 15 Nov. 2024, 12:27 Updated: 15 Nov. 2024, 17:05

CHO YONG-JUN
[email protected]

Hyundai Motor's new CEO Jose Munoz, left and Hyundai Motor Group Vice President Chang Jae-hoon during Hyundai Motor's CEO Investor Day in August. [NEWS1]

Hyundai Motor named José Muñoz its first non-Korean CEO as the automaker prepares to continue its U.S. push following the expected abolition of the nation's consumer EV tax credit.

Muñoz, a U.S. citizen, has served as Hyundai Motor's global chief operating officer as well as president and CEO of Hyundai and Genesis Motor North America since joining the company in 2019. He replaces current CEO Chang Jae-hoon, who has been promoted to vice chair of Hyundai Motor Group and will oversee the conglomerate's automotive division. Both appointments take effect Jan. 1, 2025.

Hyundai Motor shares rose by 2.23 percent to close at 206,000 won ($147.62) on Friday following the announcement. Kia fell 0.97 percent to 91,600 won.

The victory of Donald Trump, a vocal critic of the Inflation Reduction Act (IRA) and the up-to-$7,500 tax reduction it granted EV buyers, followed by the Thursday release of a Reuters report indicating that the President-elect planned to scrap the incentive, has thrown the company's overseas plans into disarray. The company had recently opened a new EV manufacturing site in Georgia, Hyundai Motor Group Metaplant America, the plant was designed to qualify for the IRA and receive tax credits.

Battery shares also plunged on Friday, with LG Energy Solution falling 12.09 percent to 51,000 won.

Hyundai Motor reported weaker-than-expected profit in the third quarter, citing warranty-related expenses in the United States.

The company praised Muñoz as “ideally suited” to lead the company as “competitiveness and business uncertainty increase,” in a statement.

Muñoz held multiple roles at Nissan Motor before joining the Korean conglomerate, including chief performance officer and chairman of Nissan China and North America. He also worked for Toyota and Daewoo Motors.

Sung Kim, a former U.S. diplomat who has served as Hyundai Motor's adviser since January 2024, was appointed president of the automaker and will lead the company's think tank. Kim also previously served as the U.S. Ambassador to Korea from 2011 to 2014 before working as U.S. special representative for North Korea.

Kia promoted Choi Jun-young to the role of president. Choi was previously head of the company’s domestic production division and served as chief safety officer.

BY CHO YONG-JUN [[email protected]]