US President Donald Trump is proposing changes that are set to upend the automotive industry. He’s instructed federal agencies to revamp emissions regulations, revoked incentives for electric vehicles, and proposed tariffs on imported cars. Some automakers, like Hyundai, are more immune to these changes than others. Its new CEO, José Muñoz, believes the company’s “localization strategy” will “help mitigate the impact of any potential policy change.”
The company is heavily investing in its US production, injecting $12.6 billion into a Georgia factory that’ll soon build the Ioniq 5 and Ioniq 9 electric vehicles, according to a Bloomberg report. It’ll also be able to build hybrid-powered vehicles there. Plus, the investment includes two joint battery ventures. Hyundai decided to invest in the US during Trump’s first presidential term, Muñoz said.
Hyundai’s only other factory in America right now is in Alabama, where the company assembles the Santa Fe, Tucson, and others.
Photo by: Hyundai
Despite its favorable position, it’s unlikely the automaker will avoid feeling some effect from the tariffs. Hyundai has many factories outside North America that could incur costs on several of its models.
The president’s proposed tariffs on imported cars have automakers considering various options to mitigate their effects. Ford CEO Jim Farley predicts higher prices for consumers and job losses for workers. Audi is considering passing some of the added costs onto buyers. Meanwhile, BMW says it will “price protect” the 2 Series and 3 Series that it builds in Mexico for the foreseeable future.
Hyundai is far less concerned right now.
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