Jose Munoz, the first foreign CEO of Hyundai Motor, visited local business sites for the first time since taking office at the end of last year. It is interpreted as a move to encourage promotions amid the implementation of high tariffs on imported cars in the U.S. since April, which has put exports in a critical situation, coupled with a recent decline in domestic sales.
According to Hyundai Motor Group on the 18th, Munoz visited Chungju, North Chungcheong Province, on the 16th and sequentially checked marketing and sales performance at major business sites, including the Hyundai Motor Chungbuk regional headquarters, the Chungju Hi-Tech Center, the Chungju Comprehensive Exhibition Center, and Genesis Chungju.
Munoz was promoted to CEO in the reshuffle of the Hyundai Motor Group's executives in November last year. Having worked at Nissan for 15 years, he was recruited in 2019 as the head of Hyundai Motor's North America regional headquarters, and since being appointed as CEO, he has overseen domestic operations and global sales. This is his first visit to regional business sites except for the headquarters and the Seoul metropolitan area.
It appears Munoz's efforts to address the domestic regional sales situation stem from a sense of crisis due to the recent slowdown in Hyundai's domestic sales performance.
Hyundai's domestic sales last month totaled 58,966 units, a decrease of 5.2% compared to the same period last year. This represents a sharp decline of 12.7% compared to the previous month. The volume models of the sedan category, Sonata and Grandeur, saw their sales drop by 29% and 33.2%, respectively, compared to the same month last year, while the Sports Utility Vehicles (SUVs) Tucson and Santa Fe also exhibited double-digit decreases during the same period.
Hyundai faced challenges in defending its performance as the Donald Trump administration imposed a 25% tariff on all imported cars starting in April. While the tariffs have not yet been reflected in prices, the situation has become increasingly difficult to endure. With the need to make up for revenue losses in the U.S. market from domestic sales, and facing difficulties at home as well, concerns among executives about this year's performance are growing.
During his visit to Chungju, Munoz was reported to have closely examined the sales situation of Genesis. It has been interpreted that the reason he chose Chungju for his first visit to a regional establishment since his appointment as CEO is that a dedicated Genesis exhibition hall opened here recently. Hyundai Motor Group established its fifth dedicated Genesis exhibition hall in Chungju last April, following locations in Gyeonggi Province’s Hanam, Gangnam in Seoul, Yongin Suseo, and Anseong.
The luxury brand Genesis is also experiencing a recent decline in sales. The sales of the mid-size SUV GV80 dropped sharply to 2,354 units last month, a decrease of 28.9% compared to the same month last year. The total sales of Genesis brand vehicles also fell by 6.1% during the same period. The Genesis brand has a higher margin compared to equivalent Hyundai models, making the group's executives particularly concerned about sales performance.
A Hyundai official said, “This year, excluding the large SUV Palisade, there are no new internal combustion engine models, making it very difficult to increase sales volume. It appears that Munoz will concentrate on securing domestic sales performance by visiting each regional headquarters, starting with Chungju.”