Hyundai’s CEO warns the US over Chinese cars disrupting the market. Munoz, Hyundai Motor’s CEO, points to markets like the UK and Europe as examples. The Korean manufacturer urges the US to keep tariffs in place. While Chinese automobiles continue to disrupt markets around the world, that impact hasn’t yet been felt in the US thanks to high tariffs and policies designed to keep those threats out, at least for the time being. But clearly, automakers already present in the States are still concerned about the road ahead. And, with President Donald Trump saying he would welcome Chinese automakers building cars in the United States, Hyundai is the latest manufacturer to sound the alarm. Hyundai Motor’s CEO, Jose Munoz, warned that the US car market could start to look like the UK and Europe’s, if the US were to do away with import restrictions. See: Detroit’s Big Three Push Back Against Trump’s Chinese Car Invitation “The UK, which ​in the past was a very profitable, very strong market, has become like China,” said Munoz, Reuters reports. “All ⁠the top sellers are Chinese because there are no barriers. So I think we could expect similar things to happen in the US, at different levels, ​unless there are certain conditions.” Chinese Cars Barred, But For How Long Hyundai Motor CEO, Jose Munoz Chinese cars are effectively priced out of the American market due to tariffs of around 100 percent on thier EVs. However, with President Trump making positive comments about Chinese automakers entering the market, provided they employ US labor and build factories within the United States, Hyundai isn’t the only company worried. Last week, the American Automotive Policy Council, which represents Ford, General Motors, and Stellantis in Washington, put out a statement, seemingly pushing back against Trump’s remarks. Trump had likened the proposal to the many Japanese automakers which build in the US. However, the council alleged that Chinese automakers unfairly benefit from state subsidies, currency manipulation, and other non-market advantages. Meanwhile, Jim Farley, Ford CEO, told employees at a town hall meeting back in July that executives expected Chinese brands to enter the US within five to ten years. The Warning From Europe Munoz himself has previously overseen Nissan’s Chinese operations and praised the speed and development of tech from China. But his warnings about the UK and Europe are centered on Hyundai’s profitability. In the UK, a country with no tariffs on Chinese cars, 15 percent of new car registrations are from Chinese brands. In Europe, the EU has applied tarrifs on Chinese EVs after Brussels found that car makers benefited from unfair state subsidies. The EU is also working on “Made in Europe” rules which will mandate how many bits of a car needs to be made within the bloc to qualify for sale. But even with tariffs in place within the EU, Munoz claimed that Chinese cars are 30-40 percent cheaper in some markets. Images: Hyundai / BYD
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