As the United States imposes tariffs on imported cars, Hyundai Motor Group's Genesis is reportedly struggling with its strategy for the U.S. To gain a competitive edge in the U.S., known as a battleground for luxury cars, it is suggested that the company needs to introduce more profitable models and increase local production.
On the 22nd, according to the automotive industry, Jose Munoz, CEO of Hyundai Motor, held a mid- to long-term business strategy seminar in New York, USA, on the 16th (local time). The seminar was attended by executives from Genesis, including Song Min-kyu, the Deputy Minister of Genesis, and regional heads from Hyundai Motor.
Hyundai Motor has regional headquarters in North America, Central and South America, India, Europe, and Africa and the Middle East. The company regularly holds seminars to review its performance and future plans.
During this seminar, plans to expand Genesis's market share in the U.S. amid the implementation of tariffs were reportedly shared. The current situation based on the group's mid- to long-term plans, such as sales figures from each headquarters, was also reviewed along with future strategies.
However, since Chairman Chung Eui-sun and Vice Chairman Jang Jae-hoon did not attend, no decisions were made regarding the introduction of new vehicles or adjustments to strategies.
Currently, most Genesis vehicles are produced at the Ulsan plant. Last year, 74,716 Genesis vehicles produced in Ulsan were exported. In the previous year, 75,003 Genesis vehicles were sold in the U.S., but only the GV70 is produced at the Alabama plant. Last year's GV70 production was 24,041 units.
Competitors of Genesis, such as BMW, Audi, and Mercedes-Benz, have decided to increase their production in the U.S. Lexus is producing about 50,000 of the 340,000 vehicles sold in the U.S. last year.
Genesis has not officially announced plans to introduce hybrid vehicles (HEV·Hybrid Electric Vehicle) to the U.S. market or increase local production. However, future measures are expected to involve expanding model offerings and boosting production within the U.S.
The mid- to long-term strategy that Munoz reviewed in this seminar includes plans for the introduction of Genesis hybrid vehicles. Vice Minister Song also noted that "Genesis's local production in the U.S. will be determined within the scope of the $21 billion investment decided by Hyundai Motor Group, aiming for annual production of 1.2 million units."
Details on specific production volumes or timing for the introduction of hybrid vehicles in the U.S. have not yet been determined. An industry insider stated, "Genesis is a representative high-revenue model within Hyundai Motor Group," adding that "only by increasing production in the U.S. can Genesis survive in the long term."