What challenges does Hyundai's Executive Chair Chung Euisun foresee for the auto industry?

Chung foresees challenges from global trade tensions, geopolitical conflicts, and intensifying competition, which are expected to curb industry profitability.

How are US tariffs impacting Hyundai?

US tariffs have significantly impacted Hyundai, costing the company approximately 1.8 trillion won ($1.2 billion) in the third quarter alone.

Why is Hyundai focusing on AI and robotics?

Hyundai is enhancing its AI and robotics capabilities to compete with global leaders and leverage its unique assets in moving entities and manufacturing data.

Home / Business and Economy / Hyundai Warns of Tough Auto Year Ahead

Hyundai Warns of Tough Auto Year Ahead

5 Jan

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Summary

Global trade tensions and geopolitical conflicts threaten industry profitability.
Hyundai faces significant financial losses due to US tariffs.
Carmaker needs to enhance AI capabilities to compete with global leaders.

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.