Hyundai is gearing up for a significant transformation in the American market. The company has made a bold $26 billion bet, aiming to boost its presence and production in the United States. This move not only reflects Hyundai’s commitment to its growth but also to ensuring that a whopping 80% of its sales in the U.S. come from vehicles produced right here at home. Such localization is seen as the secret ingredient to success, allowing Hyundai to thrive less dependent on shifting policies and regulations.
Since the arrival of Joseé Munoz as CEO, Hyundai has shifted gears from primarily producing passenger cars like the Elantra and Sonata to a more robust lineup of SUVs, including popular models like the Tucson and Santa Fe. Alongside this transition, Hyundai has established plans to produce electric vehicles in a new plant located in Savannah, Georgia. This strategic pivot comes even before recent tariff discussions, placing Hyundai in a favorable position in a fast-evolving market focused on electrification.
Munoz’s leadership style is also contributing to these changes. As Hyundai’s first non-Korean CEO, he approaches his role with a humble mindset, emphasizing the monumental responsibility of guiding one of South Korea’s largest companies. His philosophy, which he affectionately calls the “PM square,” merges speedy execution with careful planning. Drawing from his extensive experience with Japanese corporations, he believes that creating robust plans while remaining agile enough to adapt is essential for Hyundai’s success.
The company’s recent challenges, including a raid at the LG Energy Solutions factory, prompted Munoz to clarify Hyundai’s standing and commitment to American workers. He highlighted that all Hyundai employees in the U.S. hold the right visas and emphasized the importance of the specialized skills that South Korean workers bring to the table. With over 570,000 American jobs created, the company takes pride in its contributions to the U.S. economy as it navigates through the ongoing transition to electric vehicles.
As for the future, Hyundai anticipates a dramatically different landscape in ten years. The company expects to have significantly increased its sales volume, with electrified vehicles making up two-thirds of its sales. Expanding its portfolio with new hybrids and refining its manufacturing processes, including the integration of robotics, will be paramount. Munoz envisions Hyundai evolving from just an oil-oriented manufacturer to a tech and mobility leader, shaping a future where cars are more than just vehicles but integral to the advancement of humanity.
