Korean auto giant reaffirms US commitment with new $12.6b Georgia plants
Hyundai Motor reemphasized that the opening of its Hyundai Motor Group Metaplant America in Georgia will allow the Korean automaker to cope with the US government’s tariff challenges at its general meeting of shareholders in Seoul on Thursday.
“The company and its partners are investing $12.6 billion in an assembly plant and two battery joint ventures, enabling additional production capacity,” said Jose Munoz, CEO of Hyundai Motor Company, referring to the HMGMA and battery plants it is setting up with LG Energy Solution and SK On in the state of Georgia.
“The decision to make this investment was made during the first Trump administration. Our localization strategy in the important US market will help mitigate the impact of any potential policy change.”
Munoz, who became the Korean carmaker’s first foreign CEO in January, noted that the HMGMA is ramping up the production of the flagship all-electric sport utility vehicle Ioinq 5, which is on sale now, and preparing to produce the bigger, three-row all-electric SUV Ioinq 9 at the end of the first quarter.
He also reaffirmed that the automaker’s newest manufacturing site is gearing up to add hybrid vehicles to its production lineup as the company looks to cope with the stalling growth of the US EV sector. The automaker is expected to officially open the HMGMA next week.
“Competition will intensify with Chinese (original equipment manufacturers’) entry into the global EV market as well as rising inventory,” said Munoz.
“All OEMs are facing these same challenges and uncertainties. Rather than being intimidated, we will find opportunities. This is part of our DNA.”
The CEO pointed out that Hyundai Motor and its partners are adjusting capacity in China to be in line with demand and will be launching EVs specifically for the Chinese market in the near term.
Mentioning the company’s 2030 strategy announced in August last year to invest $90 billion over the next decade to develop 21 new EVs, expand hybrid models from seven to 14 and increase EV sales to 2 million units per year globally, Munoz underscored that Hyundai will continue expanding its Ioniq lineup, which will provide more economies of scale for production and supply chain.
“While we continue to lead the transition to electrification, we understand that this business is based on consumer demand, which is why we continue to invest in hybrid electric vehicles, extended range electric vehicles or EREVs and vehicles powered by internal combustion and even fuel cells,” he said.
The CEO added that Hyundai Motor will continue to expand strategic collaboration with global partners, noting its ongoing cooperation with Amazon, Waymo and General Motors.
“In the face of increasing competition, our ability to innovate and respond quickly to market developments is crucial to our success,” said Munoz.
“As such, we are expanding our successful approach to managing the business and aligning with our global teams through the ‘Hyundai Way.’”
Hyundai Motor added hydrogen business to its corporate bylaws for this year. The company explained that it will go beyond its mobility manufacturing capacities to lead the global energy transition and accelerate the movement towards a hydrogen society by expanding related businesses based on the company’s 30-year experience in the hydrogen business.
The company approved the appointment of five board members during the shareholders’ meeting, including Jin Eun-sook, executive vice president and head of Hyundai Motor’s information and communications technology division, who became the firm’s first woman internal director.
For the sake of shareholders, Hyundai Motor said it repurchased 1 trillion won ($686 million) of its shares and set the annual dividend for 2024 at 12,000 won per share, up 5.3 percent from the previous year.
hwkan@heraldcorp.com
