Hyundai Motor CEO Nominee Invites Georgia Mayors... Launches Close Ties with US Government Officials

Jose Munoz, the Global Chief Operating Officer (COO) of Hyundai Motor Group who has been appointed as the CEO of Hyundai Motor Company, recently invited high-ranking officials from the U.S. state of Georgia to Korea. Amid the incoming Trump administration's transition team reviewing plans to cut electric vehicle incentives such as subsidies, Hyundai Motor Group appears to be strengthening its close ties with U.S. political circles. In particular, since Munoz COO was selected as Hyundai Motor CEO with the Trump administration in mind, there is an interpretation that cooperation with U.S. state governments will be intensified.

According to industry sources on the 18th, Hyundai Motor Group recently welcomed Van Johnson, Mayor of Savannah, Tiffany Jiggler, Mayor of Pembroke, and Carter Ingfinger, Chairman of the Bryan County Commission, in Seoul. Jose Munoz, the Global COO of Hyundai Motor Group who is scheduled to take office as Hyundai Motor CEO next year, invited them. They toured the headquarters and other business sites and discussed operational plans for the ‘Hyundai Motor Group Meta Plant America (HMGMA)’ currently operating in Georgia.

Last week, high-ranking officials from the state of Georgia, USA, who visited the Hyundai Motor Group headquarters, are taking a commemorative photo. Photo by Jose Munoz, COO, LinkedIn

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In Savannah, Georgia, Hyundai Motor Group’s electric vehicle-only plant, which began operations in October, is located. Hyundai Motor Group has invested 7.6 billion KRW (approximately 10.7 trillion KRW) in HMGMA, and when combined with the battery joint venture plant, the investment amount exceeds 12 billion KRW. The direct and indirect job creation effect reaches about 60,000 jobs.

It is reported that Munoz COO, who has been appointed as the next Hyundai Motor CEO, strongly expressed his desire to show Georgia’s high-ranking officials the status of Hyundai’s business in Korea. Observers note that Munoz COO, who is extending his stay in Korea ahead of his CEO inauguration, has begun full-scale activities centered on the U.S. market. As a sales expert in the U.S. market, he has consistently emphasized the importance of public-private exchanges between government and companies. Starting next year, Sung Kim, former U.S. Ambassador to Korea, who has been appointed President of Hyundai Motor’s Strategic Planning Division, is expected to take a central role in public-private exchanges.

A bird's-eye view of Hyundai Motor Group Meta Plant America (HMGMA) located in Georgia, USA. Provided by Hyundai Motor Company.

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This is based on the judgment that the U.S. market will not be easy after the Trump administration takes office next year. According to major foreign media on the 16th (local time), the Trump administration’s transition team is reviewing plans to abolish electric vehicle subsidies (tax credits) of up to $7,500 based on the U.S. Inflation Reduction Act (IRA) and to strengthen restrictions on Chinese-made cars, parts, and battery materials.

Because of this, Hyundai Motor Group plans to increase hybrid (HEV) mixed production instead of electric vehicles at HMGMA. Recently, there has been a HEV boom not only in Korea but also in the U.S. In the third quarter, U.S. HEV sales increased by 28% year-on-year, more than twice the growth rate of electric vehicles (10%). The HEV share of total sales also exceeded 10% for the first time on a quarterly basis, reaching 10.6%.

Collaboration with U.S. company General Motors (GM) for purchasing strategy is also attracting attention. In September, Hyundai Motor Group signed a memorandum of understanding (MOU) with GM for comprehensive cooperation, including joint vehicle development and integrated sourcing of battery raw materials. Due to the electric vehicle chasm, it is necessary to optimize the electric vehicle parts and materials purchased so far, and future parts and materials can also reduce costs through joint purchasing by both companies. Strategically, there is an advantage in teaming up with GM, which represents the U.S. automotive industry. There is an expectation that GM can actively represent the voices of Hyundai Motor Group and the industry to the U.S. government.

Gang Nam-hoon, Chairman of the Korea Automobile Mobility Industry Association, said, "Currently, subsidies are only provided for North American-made electric vehicles, but if the Trump administration abolishes subsidies, Korean-made electric vehicles will compete on an equal footing, which is a positive aspect." He added, "Domestic companies are exploring various measures such as production flexibility and are operating multiple channels to overcome internal and external crises."

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