Hyundai CEO Jose Munoz is not concerned about the friendship between Trump and Musk and says it can benefit all automakers as analysts predict gloomy times are coming.
Hyundai CEO Jose Munoz said he wasn’t concerned about Trump and Musk during a recent interview.
The growing friendship between President-elect Donald Trump and Tesla CEO Elon Musk has raised the concerns of many analysts who say that the growing alliance between the two men could be a disaster for the automotive industry.
However, there are others who don’t share this view with Hyundai CEO Jose Munoz not only saying that he’s not concerned about Trump and Musk, but that the changing presidential administration and the growing alliance between the two men could ultimately be positive for all carmakers and the industry as a whole.
Hyundai still sees the U.S. as its most important market
Hyundai’s new plant in Georgia will be a key part of Hyundai’s U.S. operations with the facility making EV and hybrid models.
Munoz’s remarks came during a recent Q&A session with reporters with the CEO saying that it still sees the U.S. as its most important vehicle market. Munoz revealed Hyundai invested heavily in the U.S. and even confirmed it wasn’t necessarily because of all the incentives that were given to it by the outgoing Biden administration.
“I don’t see that as a concern, honestly,” Munoz said in a recent interview with Bloomberg. “If anything, having someone who is close to the US industry and to the EV world, I think it should be positive for the industry. I think it’s in his own interest and probably in the interest of the country to trigger investments and growth and also to ensure that we maintain competitiveness in our country.” He went on further stating “We haven’t invested in the US because of IRA (Inflation Reduction Act) or because of incentives in general,” he said. “It’s not a good policy to just simply make an investment because of the incentives, because they can come and go. We believe the US market is the most important for us today and it’s going to continue to be the most important in terms of not only the absolute but also the growth and therefore, investing and localizing is a good strategy. I think we are in a better place today than we were four or five years ago.”
In addition to these investments, Hyundai has also made physical moves to make them produce fruit. The Korean automaker opened a $7.6 billion EV manufacturing facility in Georgia which is home to the Ioniq 5. The facility will also be responsible for producing five other EVs for not only Hyundai but also Kia and Genesis over the next few years. The site will also help produce hybrid models and Hyundai says the facility can produce up to 500,000 units annually if it needs it to do so.
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Not everyone agrees with Munoz
Elon Musk is now one of the most influential figures working with Donald Trump but analysts have raised alarm bells about his growing relationship with the incoming president.
While Munoz is not concerned about Trump and Musk, others in the auto industry don’t share the same view. Trump has said in the past that he plans to abolish the Federal EV tax credit and Musk has actively supported the idea due in part to the removal of the program helping Tesla while also potentially hurting its rivals at the same time. Meanwhile, Trump’s separate pledge to impose a 25% tariff on products from Canada and Mexico has the potential to raise car prices for consumers and generate other ripple effects that could reverberate through the automotive industry with numerous analysts raising the alarm about the potential consequences.
“There are different estimates out there,” said Jan Griffiths in a recent report. “The most recent one I saw from the Wells Fargo analyst predicted that the impact for component parts – tariffs on vehicles – could be anywhere between $600 and $2,500 per vehicle.”
The tariffs could also cause turmoil in other sectors of the U.S. economy but it remains to be seen if Trump follows through with these threats or if his advisors will steer him away from these plans once he formally assumes office.
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