'Hyundai Motor Group should overcome perfect storm through innovation'

Carmaker leaves open diverse action plans under Trump presidency

By Lee Min-hyung

GOYANG, Gyeonggi Province — Hyundai Motor Group must overcome a perfect storm of challenges facing the global automotive industry with an unwavering spirit for innovation, the head of the carmaker said in a New Year message on Monday.

“Any external stimulus will be of great help to us, as we will fall into a status of complacency without crisis,” Chung Euisun, executive chair of the group, said.

“We have experienced crises all the time and overcame them successfully, and the group has become much stronger after such a perfect storm.”

The message came at a crucial time when the global automotive industry faces growing uncertainties amid an overall market downturn and geopolitical risks.

The incoming Donald Trump administration also comes as a major risk for the carmaker, as he threatens to step up regulatory pressure on electric vehicle (EV) makers, such as Hyundai Motor and Kia.

However, Chung reiterated his willingness to tackle external uncertainties by taking the lead in the rapidly changing industry and making timely investments.

“Hyundai Motor Group should remain bold in making investments for core areas, and should also be willing to pursue strategic collaborations with competitors when necessary,” he said.

A group of president-level executives also took part in the annual event to present their visions for the future.

Hyundai Motor President and CEO Jose Munoz dispelled concerns about Trump’s advocacy for trade protectionism.

He said the carmaker remains “careful but hopeful” over the incoming Trump administration, as the company contributes significantly to creating jobs there. Hyundai Motor Group is estimated to create 190,000 jobs in the firm’s overall value chain across the world’s largest economy.

Sung Kim, president of Hyundai Motor in charge of setting the firm’s overseas strategies, declined to comment on the market outlook under the upcoming era of Trump.

“Trump starts his second term in two weeks (on Jan. 20), so we do not have to make any hasty generalizations,” Kim told reporters after the event. “Hyundai Motor Group has action plans for each scenario, so we will be able to react to any changes in the market environment there.”

Hyundai Motor Group Vice Chair Chang Jae-hoon said the group's priority this year is to solidify its position in developed markets.

“We need to strengthen our position in major advanced markets, such as the U.S. and Europe,” Chang said. “Both markets are challenging, but we are making efforts in multifaceted ways to overcome unfavorable market circumstances, including the chasm of EVs before their widespread adoption.”

He also expressed confidence in defending against pessimistic market outlook by expanding sales for hybrids and EVs.

“We need to achieve growth both in not just quantity, but quality, so the carmaker will take a step further in leveling up technological expertise and reducing manufacturing costs,” he said.