Hyundai Motor, Kia to rebalance portfolio as US tariff shocks weigh on earnings

Hyundai Motor and Kia are moving to rebalance their production portfolio in the United States, in a desperate bid to minimize a possible earnings drop amid the country's imposition of massive auto tariffs. Last week, Hyundai Motor Group's two automakers reported solid first-quarter earnings, boosted by strong auto sales in the U.S. The figure, however, is feared to fall in the second quarter and the latter half of 2025, following the U.S. implementation of a 25 percent tariff on imported vehicles. In response to the escalating trade uncertainty, the group has formed a task force dedicated to setting up a contingency plan to optimize auto production and sales in the U.S. “We will prepare the contingency plan to shape our ideal production strategies by regions and vehicles,” Lee Seung-jo, executive vice president at Hyundai Motor, told investors during a conference call on Thursday. The executive also said it will gradually localize production there for more automobiles and auto parts from a long-term viewpoint. The strategy seems inevitable, given the carmaker's increasing reliance on iWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times