Hyundai Motor: Launches task force to respond to US tariffs

Hyundai Motor: Launches task force to respond to US tariffs

Hyundai Motor Group has established a task force to address the challenges posed by recent US tariffs on imported automobiles and steel. The initiative, announced amidst ongoing trade uncertainties, underscores the automaker's commitment to navigating these complexities and maintaining its market presence.

The task force, led by Hyundai Motor's COO Claudia Marquez, is designed to implement strategic measures to mitigate the impact of the tariffs. Marquez emphasized the importance of price stability and assured customers that prices will not increase in the short term [1].

In a significant move, Hyundai Motor Group has partnered with Posco Holdings to build a steel plant in Louisiana. The $5.8 billion project, set to commence operations in 2029, aims to reduce reliance on imported steel and align with President Trump's domestic production goals [2]. Posco will take an equity stake in the plant, which will have an annual capacity of 2.7 million tonnes.

The partnership between Hyundai and Posco is a strategic response to the 25% tariffs imposed by the US. Posco's investment in the Louisiana plant will also help Hyundai secure a stable supply chain for key raw materials used in electric vehicle batteries. This move is part of Hyundai's broader $21 billion investment in the US, which includes plans to produce 3.26 million battery-powered vehicles annually by 2030 [2].

In response to the tariffs, Hyundai Motor has temporarily halted production of some electric vehicles in South Korea. The suspension, which began on April 24, is due to a decline in EV orders and the impact of the tariffs on imported vehicles [3]. However, the automaker has maintained sticker prices for its current model lineup to assuage customer concerns.

Hyundai's strategic investments and partnerships position it to navigate trade uncertainties while reinforcing its presence in the US market. The automaker plans to unveil 42 new models next year, including hybrids and electric vehicles, to cope with the tariffs and other market challenges [4].

References:
[1] https://www.teslarati.com/hyundai-posco-steel-plant-trump-tariffs/
[2] https://www.koreaherald.com/article/10470218
[3] https://www.investing.com/news/stock-market-news/hyundai-to-temporarily-halt-some-ev-production-amid-weak-demand-and-us-tariffs-93CH-3991196
[4] https://www.kedglobal.com/automobiles/newsView/ked202504200002