Hyundai Warns of Tough Auto Year Ahead

Hyundai Motor's Executive Chair Chung Euisun has cautioned that the global automotive industry is entering a period of significant hardship. He anticipates that escalating trade disputes and intensifying competition will erode industry profits, while geopolitical instability poses risks to operations in various regions, potentially disrupting business activities. Chung explicitly stated that the difficulties long feared by the industry are now materializing.

The South Korean automaker has already experienced substantial financial impact, partly due to a 15% tariff on cars manufactured in Korea, which resulted in approximately 1.8 trillion won ($1.2 billion) in losses during the third quarter alone. Adding to these challenges, an immigration raid on a Hyundai-LG Energy Solution Ltd. plant in the United States in September is expected to cause delays of at least two to three months in construction.

Chung also highlighted Hyundai's urgent need to upgrade its artificial intelligence capabilities, admitting the company is falling behind rivals. He called for strategic collaborations to accelerate advancements in AI. As part of its commitment to AI and robotics, Hyundai invested 125 trillion won in South Korea over the next five years for AI, robotics, and other emerging technologies, aiming to leverage its unique assets in moving entities and manufacturing data as a competitive advantage.