Hyundai CEO says Trump and Musk link is good for the auto industry

In a current podcast look, New York Occasions White Home correspondent and CNN contributor Maggie Haberman noticed that the friendship between President-Elect Donald J. Trump and Elon Musk could also be waning, noting that the Tesla (TSLA) CEO has an outsized theoretical and precise bodily presence in Trump’s orbit.

“Trump does complain a bit to folks about how Musk is round quite a bit,” Haberman mentioned. “He actually parked himself in Trump’s face.”

Whether or not or not the standing of the “first buddy” relationship is crumbling, it has helped Musk achieve each political energy and improve his web price.

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Regardless of rolling over $600 million towards Republican causes over the last election cycle, he’s getting his cash’s price, as Tesla shares have skyrocketed since Trump’s election.

Nevertheless, one auto govt stands unafraid of Musk and no matter self-driving electrical object he may throw at him.

In a current interview, Hyundai’s (HYMTF) new president and CEO, Jose Munoz, gave some perception as to why Musk’s buddy-buddy relationship with the incoming President is sweet for the large automaker he controls and for the entire American automotive trade.

Musk and Trump usually are not a menace to this CEO

In a current sit-down with Bloomberg, the South Korean automaker’s new CEO expressed indifference about Elon Musk’s bromance with Donald Trump. Munoz, who took the helm on January 1, identified that Hyundai’s hefty investments within the U.S. are pushed by its significance as the corporate’s prime market — not by Biden-era incentives.

Although Elon Musk’s political ties appear to place Tesla better off over its rivals, Munoz expressed quite a lot of optimism about Musk and Trump’s “first buddy” relationship.

“I’m not fearful, truthfully,” Munoz informed Bloomberg. “If something, I feel having somebody who may be very near the U.S. trade and the EV world, I feel it needs to be optimistic for the trade as a result of I feel it’s in his personal curiosity and doubtless is within the curiosity of the nation to set off investments and progress and in addition to make sure that we preserve competitiveness in our nation vis-a-vis the Chinese language and the rivals.”

“So I feel that, that could be a optimistic.”

One difficulty central to the EV dialog is the Trump transition crew’s teaser of eliminating the federal EV tax credit score early in his new presidential tenure.

In earlier statements, Musk has supported eliminating EV tax credit as a result of he thinks Tesla will thrive with out it whereas its rivals will battle to adapt.

“Take away the subsidies. It would solely assist Tesla,” he mentioned in a July submit on X (previously referred to as Twitter. “Additionally, take away subsidies from all industries!”

Take away the subsidies. It would solely assist Tesla. Additionally, take away subsidies from all industries!

— Elon Musk (@elonmusk) July 16, 2024

At the moment, a handful of autos below the Hyundai Motor Firm umbrella are eligible for the $7,500 EV tax credit score, together with autos from Kia, Hyundai and Genesis manufacturers. Previous to 2025, no Hyundai autos have been eligible, regardless of pushing file gross sales in 2024.

Hyundai’s large push towards the U.S. market will be exemplified in its lately opened $5.5 billion EV manufacturing unit in Georgia. In keeping with Hyundai, it has a 300,000-unit annual capability and capabilities to develop to 500,000 items. At the moment, it produces the Hyundai IONIQ 5, and Hyundai plans so as to add 5 extra EV fashions throughout Hyundai, Kia, and Genesis, in addition to hybrid variations of their autos.

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In mild of this, Munoz famous that Hyundai’s large EV push within the States was born throughout Trump’s first time as president, and was accomplished to assist assist its greatest market.

“Our firm took the choice to make important funding within the USA throughout the first Trump administration. We haven’t invested within the U.S. due to IRA or due to incentives normally. It isn’t coverage to easily make an funding due to incentives, as a result of they’ll come and go,” Munoz mentioned.

“We consider the U.S. market is a very powerful for us in the present day and goes to be a very powerful by way of not solely absolutely the, but in addition the expansion. And subsequently, investing and localizing is an efficient technique. I feel we’re in a greater place in the present day than we had been 4 or 5 years in the past just because the funding offers us way more flexibility.”

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Hyundai noticed file progress in 2024 — with none Federal tax credit

Regardless of not having any assist from the IRA credit that U.S. home rivals Ford and Normal Motors profit from, Hyundai Motor manufacturers posted file gross sales positive aspects in 2024 throughout its electrified lineup.

Hyundai’s sister model, Kia, skilled an enormous bounce in EV gross sales in 2024. In keeping with its figures, gross sales of Kia’s various vary of EVs, such because the compact Niro, the Mannequin Y-rivaling EV6, and the three-row EV9 SUV, noticed a 74% improve in 2024, accounting for 7% of its complete quantity.

“Kia has solidified its management place throughout the EV market,” Kia North America and Kia America president and CEO Sean Yoon mentioned in a press release. “Our technique is working to additional elevate the Kia model and the potential for sustained progress within the U.S. market.”

Hyundai reported what it referred to as ‘record-breaking’ December 2024 gross sales, a feat that Hyundai Motor North America CEO Randy Parker attributed to “providing customers a wide range of product and powertrain choices that match their wants.”

Hybrids turned out to be a extra interesting product for the model. In December 2024, EV gross sales jumped by 13%, whereas hybrid gross sales jumped by 79%; led by ballooning gross sales of fashions just like the Santa Fe HEV (which grew by 87%) and the Tucson HEV (a 133% improve).

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