(Bloomberg) -- Elon Musk’s close relationship with incoming US President Donald Trump could be good for all automakers, according to the new chief executive officer of Hyundai Motor Co., who dismissed concerns over the influence the Tesla Inc. boss may wield.
“I don’t see that as a concern, honestly,” Jose Munoz said during his first television interview since assuming the top role at the world’s third-biggest automaker on Jan. 1. “Having someone who is very close to the US industry and to the EV world should be positive.”
Musk has become a key member of Trump’s inner circle and is set to lead a new effort — called the Department of Government Efficiency — along with entrepreneur Vivek Ramaswamy to deliver a leaner, more efficient government. One of Trump’s first targets could be the $7,500 tax credits on electric car purchases under Joe Biden’s signature Inflation Reduction Act. Trump has said he would reverse Biden’s EV policies on day one of his presidency.
Hyundai recently opened a $5.5 billion plant near Savannah, Georgia that produces the flagship Ioniq 5 electric mid-size SUV, and plans to invest $90 billion globally by the end of 2030 to deliver 21 new EVs and 14 hybrid models as part of a push to lift annual sales to 5.55 million vehicles.
In the interview, Munoz said the future of Biden’s incentives won’t change the company’s strategy, pointing out that the decision to build the Georgia factory was taken during the first Trump administration.
“We haven’t invested in the US because of IRA or because of incentives in general,” Munoz said. “We are in a better place today than we were four or five years ago simply because the investment gives us much more flexibility.”
The US is Hyundai’s “most important market” and localizing production there is one of the “simplest and better” solutions to deal with policy changes, he said.
Hyundai’s US sales rose 4% to a record in 2024, with hybrids and EVs accounting for much of the growth.
To attract younger drivers and increase EV sales, Hyundai is now selling vehicles on Amazon.com Inc.’s auto marketplace. Until now, shoppers could choose a car from multiple automakers but couldn’t actually purchase it on Amazon. Rather, they needed to be connected with a dealer to complete the transaction.
The move will cut the time taken to buy a car to as little as 15 minutes, and “represents the future of automotive retail,” Hyundai has said.
Hyundai hopes revenue from online platforms will account for up to 30% of total US sales by end of this decade.
In its home country of South Korea, Munoz said Hyundai is “watching carefully” the political turmoil in Seoul, where impeached President Yoon Suk Yeol is resisting attempts to arrest him. Korea has been in political crisis since Yoon declared martial law at the beginning of December. While the order was retracted after lawmakers raced to parliament to overturn the measure, the move rattled financial markets and hurt the won.
Munoz said Hyundai hasn’t felt any impact on its business, and that “hopefully the situation will be clear very soon.”
In China, where legacy foreign automakers are struggling to compete with the rapid rise of domestic EV makers, Munoz pointed to Hyundai and local partner BAIC Motor Corp. plan to inject $1.1 billion into their joint venture as a sign of the company’s commitment.
Being in the world’s biggest auto market is also “a very good way to experience and appreciate how to improve,” he said. “The local Chinese automakers are doing a better job than anyone else.”
--With assistance from Adrian Wong.
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