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Written by Hyunjoo Jin
SEOUL (Reuters) – South Korea’s Hyundai Motor ( OTC: ) said on Thursday it is in talks with General Motors ( NYSE: ) to offer electric commercial vehicles to its U.S. peers, as it expects sales growth halved this year due to weak demand. .
It also marked a policy risk in the United States as US President Donald Trump began to act on promises of tariffs, although he said any negative impact would be greater on Japanese rivals.
The automaker, which signed its first tie-up deal with GM last year, also said it intends to sign binding contracts for cooperation in the areas of sales and passenger and commercial vehicles during the first quarter. of this year.
“We are considering rebranding our commercial EVs and offering them to GM… The deal will pave the way for our entry into the North American commercial vehicle market,” Chief Executive Officer Hyundai Finance Lee Seung Jo said in an analyst call.
The talks come as automakers look for policy uncertainty in the US, the world’s second-largest auto market, to boost demand. This week US President, Donald Trump, said he may impose tariffs of 25% on Canada and Mexico from March 1.
Meanwhile, political unrest has undermined confidence at Hyundai Seoul’s doorstep.
“We expect more business uncertainty this year than ever before due to potential policy changes not only in the domestic market but also in the US, while there will be stricter manufacturing regulations Europe,” Lee said.
Hyundai expects to suffer less from the US tariffs than Japanese rivals including Toyota Motor (NYSE: ) and Honda (NYSE: ) Automotive with a major manufacturing presence in Mexico and Canada.
The South Korean automaker said it plans to continue local production in the United States to mitigate any impact from the tariffs. It also said it will make hybrid cars at its new factory in Georgia.
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Hyundai, which owns Kia and is the world’s third-largest carmaker by sales, on Thursday forecast 2025 revenue growth of 3.0% to 4.0%, versus 7.7% last year. . It expects an operating margin of 7.0% to 8.0%, up from 8.1% in 2024.
Hyundai cited concerns including a slowdown in major markets, slowing EV demand and macroeconomic uncertainty, as Trump said he would consider repealing EV tax credits.
The downward spiral began in early December after South Korea’s impeached president declared martial law to increase repatriated wages, but also raised car warranty terms, lowered profits, said Hyundai.
In October-December, Hyundai reported an operating profit of 2.8 trillion won ($1.95 billion) as it used advertising in a weak car market.
That was less than the 3.2 trillion won average of 24 analysts’ estimates compiled by LSEG SmartEstimate, which averages estimates from the most accurate analysts of all time.
During the quarter, global retail sales fell as solid sales in the United States and India were offset by sluggish demand in South Korea, Europe and China.
Hyundai shares were flat after the earnings announcement.
The automaker also said it is considering offering Ioniq 5 EVs to robotics maker Waymo in North America and beyond. Hyundai, which is developing autonomous technology at its Motional facility, says it aims to commercialize robots next year.
It said it was open to listing humanoid robots at Boston Dynamics but would not consider the matter anytime soon.
($1 = 1,436.4200 won)
