SEOUL, November 21 (AJP) - Hyundai Motor Company has named Jose Munoz as its new CEO, a move widely interpreted as a strategic response to the potential implications of a second Trump presidency in the United States.
Munoz, who joined Hyundai in 2019 as President and Global COO, has a proven track record of success in North America. Under his leadership, Hyundai's market share in the region rose from 3.9% to 5.6% between 2018 and 2023. The company credits him with strengthening dealer competitiveness and driving profitability.
The appointment comes as the newly re-elected US President is reportedly considering reducing subsidies for electric vehicles (EVs), a key provision of the Inflation Reduction Act. Hyundai had invested US$7.6 billion in the Hyundai Motor Group Metaplant America (HMGMA) project in late 2022 to produce approximately 30,000 EVs annually.
The company's decision to appoint Munoz suggests a strategic focus on adapting to potential shifts in US policy and maintaining a strong presence in the North American market.
President Munoz said at Hyundai Motor's "CEO Investor Day" last August, "Contrary to our initial plan, we decided to produce hybrid cars at HMGMA." He explained, "After discussions with production experts, we concluded that producing hybrid cars at HMGMA is feasible with a small investment, and that is Hyundai's biggest competitive advantage."
The new president of Hyundai Motor has yet to face another task with Trump's reentrance in the white house, with Tesla Inc. owner Elon Musk elected as the head of Department of Government Efficiency in the U.S.
Tesla currently sides with Trump on the EV subsidies cut as it believes the damage will be greater for its competitors in the U.S. market.
Hyundai Motor also appointed Sung Kim, an adviser who formerly served as the U.S. envoy on the North Korean nuclear issue and ambassador to Seoul, as president of the group's think tank division to oversee global external affairs and policy research for the incoming change in the EV era.