Just two weeks after the major raid of the American immigration authority on a construction site of Hyundai, the CEO of the Korean car company used an investor day in New York to explain its further plans on its most important market. The group wants to significantly increase the proportion of vehicles produced in America and installed parts, said José Muñoz. By 2030, the third largest car manufacturer in the world wants to manufacture more than 80 percent of its vehicles sold in the USA in local works. That would be almost twice as much as before, the proportion of raw materials and parts related to batteries and steel should increase from currently 60 to 80 percent. In order to accelerate this process, CFO Scott Lee announced investments of the equivalent of $ 11 billion in the expansion of manufacturing capacities and the establishment of a robotics ecosystem. These investments are part of the $ 26 billion, which Muñoz promised US President Trump, shortly after South Korea and the United States had agreed on the reduction of the tariffs. The final decision is still pending. Therefore, customs duties of 25 percent have so far continued. Hyundai therefore lowered his winning expectations and now expects a profit margin of six to seven percent for 2025, i.e. one percentage point less than before. Sales will grow by five to six percent this year, two percentage points more than in January forecast. Partnership with General Motorsim Framework of a partnership with General Motors, the Koreans, together with the Americans, develop several vehicles especially for Latin America and an electrical van for North America. “We first scratch the surface here and can achieve a lot more together,” said Muñoz. The CEO, who was the first non-Koreans at the beginning of the year, emphasized: “Our investments in North America are not reactive, they are part of a long-term strategy. Today it is the most profitable market and will continue to be the most profitable market.” Hyundai sells a good third of his vehicles in the United States. Muñoz had been referred to the top of the group because he should increase sales there as the chief of America for years. Muñoz also made it clear: “We cannot rely on the USA alone.” Therefore, Hyundai has also developed a strategy of how the group will become profitable again after years with shrinking marking in China. The plan begins with a locally produced electric sedan and a partnership with the company based in Beijing for autonomous driving. All in all, Hyundai wants to increase the production of vehicles in its core brand to 6.2 million by 2030. That would be an increase of 20 percent compared to current annual production. In addition to the expansion of production in the USA, the capacity in factories in India and South Korea is to be expanded. Hyundai also opened a facility in Saudi Arabia at the beginning of next year. At the beginning of September, the American immigration authority had arrested almost 500 allegedly illegal workers on the construction site of a joint battery factory by Hyundai and LG, most of whom were flown back to Korea after a few days. The incident has led to considerable diplomatic tensions between Washington and Seoul. Many of those arrested had contributed to the calibration and testing of advanced battery technology in a work that supports Hyundai’s US activities, Muñoz said to the investors in New York. He hoped that “the USA and South Korea can find advantageous solutions for short -term business trips from special workers for both sides”.
Go to source