By Heekyong Yang and Hyunjoo Jin
SEOUL (Reuters) -Hyundai Motor has named Jose Munoz, its U.S. chief and global chief operating officer, as co-CEO, the first appointment of a foreigner to that rank at a major South Korean conglomerate.
The move – along with the appointment of a former US diplomat to oversee global external affairs – is expected to help the automaker deal with potential challenges posed by a second Trump administration.
Hyundai, which together with sister company Kia is the world’s third largest automaker, currently has three co-CEOs.
Munoz, who is credited with propelling the company to record sales in North America, will still be outdone by co-CEO Euisun Chung, grandson of the company’s founder who is also executive chairman, and by President Chang Jae-hoon will become vice chairman of the group and oversee the automotive division. Lee Dong-seok, who is also president of the company, is the other co-CEO.
The leadership changes will boost Hyundai’s global competitiveness and help it “better prepare for uncertainties in the global business environment,” the automaker said in a statement.
Sung Kim, a former US diplomat who was part of a team that assisted Donald Trump in his first term at a summit with North Korean leader Kim Jong Un, was hired as an adviser in January. He will now be responsible for global external affairs, Hyundai added.
Trump’s policies — including promises to raise tariffs and cut subsidies for EVs — have the potential to do a lot of damage to Hyundai and Kia, which jointly rank second behind Tesla (NASDAQ:) in the electric vehicle sales in the US
According to an estimate by Hanwha Investment & Securities analyst Kim Sung-rae, imports account for about 60% of their US sales.
Trump has also floated the idea of imposing 200% tariffs on cars imported from Mexico, where Kia operates a manufacturing facility.
Hyundai began producing electric cars at a plant in Georgia in October, expecting those vehicles to qualify for federal credits created under the Biden administration. It has also announced plans to build two battery factories in North America with LG Energy Solution and SK On.
But Trump’s transition team plans to end the $7,500 consumer tax credit for EV purchases as part of broader tax reform legislation, sources say.
Munoz, a native of Spain and a U.S. citizen with a doctorate in nuclear engineering, joined the automaker in 2019 as CEO of Hyundai Motor (OTC:) America.
Before that, he spent 15 years at Japan’s Nissan (OTC:) Motor, where he was once considered a potential candidate to take over after the ouster of Carlos Ghosn.
“The promotion is not only a preparation for Trump’s presidency, but also a recognition of Munoz’s role in Hyundai’s solid U.S. performance, despite its electric cars not qualifying for U.S. consumer tax benefits,” said Park Ju-gun , head of business analytics firm Leaders. Index.
Hyundai said it credits Munoz with “record sales, market share growth and financial performance for both the Hyundai and Genesis brands in the North American market.”
Top management positions at the automaker have traditionally been dominated by South Koreans, but Chung has aggressively tried to bring in foreign executives from other automakers.
Hyundai has also hired several former South Korean diplomats for its Global Policy Office in recent years, in a move widely seen as anticipating policy uncertainties that could arise from a change in the U.S. administration.
Munoz’s appointment will take effect from January. Hyundai said it has not yet decided who will take on its current roles of US Chief and Global Chief Operating Officer.
Shares of Hyundai rose 2.2% on Friday, while shares of Kia fell 1%.
