Hyundai CEO reasserts $5.5B U.S. investment decided on during first Trump term

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Hyundai CEO reasserts $5.5B U.S. investment decided on during first Trump term

Published: 20 Mar. 2025, 16:03 Updated: 24 Mar. 2025, 14:49

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

Hyundai Motor CEO José Muñoz speaks during the company's annual shareholder meeting in southern Seoul on March 20. [HYUNDAI MOTOR]

Hyundai Motor CEO José Muñoz reaffirmed that the company's $5.5 billion investment in an EV plant in Georgia was decided during U.S. President Donald Trump's first term, making an imploring plea against his trade war.

The remarks came as Trump threatened to impose at least 25 percent tariffs on all auto imports starting on April 2 unless the companies make investments in the United States for local manufacturing.

"The decision to make this investment was made during the first Trump administration. Our localization strategy in the important U.S. market will help mitigate the impact of any potential policy change," Muñoz said during Hyundai's annual shareholder meeting in southern Seoul on Thursday.

"We will implement region-specific strategies to boost our market share and profitability and effectively respond to the regulations and markets of different regions and optimize our supply chain by localizing production and adjusting parts sourcing."

The Georgia plant, set to officially open on March 26, will primarily produce EVs but will add a hybrid manufacturing line as well.

Muñoz also added he will expand strategic partnerships with global companies like Amazon, Waymo and General Motors.

Hyundai is planning to release 10 new models this year including the long-anticipated next-generation Nexo hydrogen-powered car.

"With growing volatility in foreign exchange rates and the U.S. interest rate, we are confronting escalating trade tensions and protectionism. The global automobile industry, in particular, is forecast to see uneven growth due to declining consumer confidence. In the meantime, competition will intensify with Chinese automakers’ entry into the global EV market as well as rising inventory," the CEO said.

"All automakers are facing these same challenges and uncertainties. Rather than being intimidated, we will find opportunities. This is part of our DNA."

BY SARAH CHEA [[email protected]]