Hyundai Motor Co. has made a groundbreaking move by naming Jose Munoz as its new Chief Executive Officer, making him the first foreigner to lead the South Korean automaker. The announcement was made on Friday, with the leadership change set to take effect on January 1, 2025. This marks a significant step in Hyundai's ongoing global expansion and strategy, as it aims to strengthen its presence outside its home country.
Jose Munoz, 59, has been with Hyundai since 2019. Initially serving as the company's global chief operating officer, Munoz oversaw the automaker’s operations in North and South America. Prior to joining Hyundai, he had a long tenure at Nissan Motor Co., where he spent 15 years, including a role as the chairman of Nissan’s China unit. Munoz’s extensive experience in global markets, especially in North America, positions him well to lead Hyundai during a crucial phase of transformation in the global automotive industry.
Munoz replaces Jaehoon Chang, who is being promoted to vice-chairman of Hyundai’s automotive division. Chang has been an integral part of Hyundai’s leadership, but the company has made the strategic decision to bring in a foreign CEO to navigate the complex global automotive landscape. The shift in leadership is part of a broader effort by Chairman Euisun Chung to bring in external talent and innovative leadership to guide Hyundai into the future.
As CEO, Munoz will face significant challenges in an industry undergoing major shifts. One of the key issues he will address is the slow pace of the global transition to electric vehicles (EVs). Hyundai has set ambitious goals, aiming to double its hybrid car lineup and maintain its target of 2 million EV sales annually by 2030. However, the global automotive market is becoming increasingly competitive, particularly with the rise of Chinese EV manufacturers. Moreover, the uncertainty surrounding EV tax credits in the US—especially with the incoming Trump administration—poses another challenge that Munoz will need to navigate.
Hyundai has made significant strides in the US market, where it became the No. 4 carmaker in 2023. The company recently began production at a new plant in Georgia, which will increase its total North American output to nearly 1.3 million cars annually. Munoz will likely focus on reinforcing Hyundai’s position in the US while exploring strategies to adapt to changing policies on EV adoption and government incentives.
The appointment of Munoz is seen as part of a broader effort by Hyundai’s chairman to foster a more innovative and dynamic corporate culture. Park Ju-gun, head of the corporate research firm Leaders Index, commented that Munoz’s leadership will bring a new strategic direction for Hyundai, particularly in the US market. Park also noted that Chairman Chung has been proactive in scouting and promoting external talent, which is considered rare among Korean conglomerates.
In addition to Munoz’s appointment, Sung Kim has been named president of Hyundai Motor, while Jun Young Choi has been promoted to president of Kia Corp., Hyundai’s sister company. These leadership changes come at a time when Hyundai is grappling with tepid sales and earnings misses in the third quarter, reflecting the challenges facing the automaker globally. Hyundai’s India unit, which went public in October, has also reported a drop in quarterly profits.
Conclusion
Hyundai’s decision to appoint Jose Munoz as CEO signals the company’s commitment to global expansion and adapting to the rapidly changing automotive market. Munoz’s leadership and strategic insights will be crucial as Hyundai navigates the transition to electric mobility, competition from emerging markets, and regulatory challenges. With these leadership changes, Hyundai hopes to position itself for future growth and maintain its competitive edge in the global market.