Hyundai Motor Group, the South Korean automotive conglomerate encompassing Hyundai, Kia, and Genesis, is taking proactive steps to mitigate potential U.S. measures against vehicles with Chinese connections. The company is diversifying its parts supply chain beyond China and engaging in lobbying efforts in the United States.
Lee Ho-geun, an automotive engineering professor at Daedeok University, emphasized the need for Hyundai and Kia to reduce their dependence on China and expand their supply chains to countries like Vietnam. He stated, “Hyundai Motor and Kia have to brace for the worst by reducing their reliance on China and broadening their supply chains into other countries such as Vietnam.”
The U.S. Department of Commerce, led by Secretary Gina Raimondo, is expected to issue regulations against Chinese-connected vehicles later this year. Raimondo mentioned that the department is considering significant actions against such vehicles to protect American data from national security risks.
The Biden administration has already taken a firm stance on Chinese electric vehicle (EV) imports, recently increasing tariffs on Chinese EV imports in the U.S. by over 100%. There are also discussions about penalties for Chinese EVs manufactured in Mexico, as the administration believes China is attempting to evade tariffs and regulations by producing electric vehicles in Mexico and importing them into the United States.
Hyundai Motor Group’s proactive measures reflect the company’s commitment to navigating potential regulatory challenges and ensuring its competitiveness in the U.S. market.
