Hyundai CEO optimistic about Trump-Musk relationship

Hyundai CEO Jose Munoz has a different take on how President-elect Donald Trump’s relationship with Elon Musk will impact the auto business – namely, that it could benefit automakers.

The details: In his first television interview since assuming the CEO role, Munoz said he doesn’t see Musk’s ties to the incoming Trump administration as a concern in an interview with Bloomberg. In fact, Hyundai’s top boss sees the relationship working to the advantage of the business, despite some thinking the President-elect’s ties to the tech multi-billionaire will negatively impact other automakers, in the interest of Tesla.   

• One of the biggest concerns – amid some strides being made with electric vehicles – is the potential that President-elect Trump will seek to end the $7,500 federal tax credit for EV purchases.

• During a January 7 press conference, Trump reiterated his plans to reverse policies implemented under President Joe Biden’s administration favoring electric vehicles. 

Even amid the concerns, Munoz contends that “Having someone who is very close to the US industry and to the EV world should be positive.” 

Between the lines: Munoz said a decision by President-elect Trump to overturn electric vehicle incentives implemented under the Biden administration won’t affect Hyundai’s EV plans, many of which are well in motion.    

• Hyundai is already producing the new all-electric Ioniq 5 SUV at its new $7.5 billion “metaplant,” located west of Savannah, Georgia, which is expected to hold a grand opening in early 2025. 

• The decision to build the plant – aimed at localizing EV production in the U.S., Hyundai’s “most important market,” – was made during President-elect Trump’s first term in office, notes Munoz.  

Electric vehicles have become a central part of Hyundai’s business operations, with the company’s sales rising to a record-high (4%) in 2024 due in large part to hybrid and EV sales. Building on that momentum, the automaker plans to invest $90 billion globally by the end of 2030 to deliver 21 new EVs and 14 hybrid models in an effort to increase its annual sales to 5.55 million vehicles. 

Bottom line: Munoz’s optimism about the automotive business, with the incoming Trump administration, aligns with general sentiments shared by many in the business.  Still, given some of the unpredictable factors associated with any political transition, automakers and dealers would do well to temper that optimism with some caution.

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