Hyundai Faces $1.3 Billion Loss, Yet a Transformative US Agreement May Change the Game

Impact of Tariffs: Hyundai Motor Co. faced significant profit losses due to US tariffs, amounting to approximately $1.3 billion in the third quarter, but a new trade deal reducing import tariffs on South Korean vehicles may provide stability and a clearer direction for the company.

Expansion Plans: The automaker is rapidly expanding its US operations, with plans to introduce a new hybrid SUV and increase production capacity through a $21 billion investment program, aiming to create around 14,000 jobs and enhance its footprint in the North American market.

Mixed Financial Performance: While Hyundai reported an 8.8% increase in revenue to a record 46.7 trillion won, its operating profit fell by 29%. Sales in North America and Europe showed positive trends, particularly in hybrids and EVs.

Hydrogen Fuel Cell Initiative: Hyundai has initiated a project for a hydrogen fuel cell plant in South Korea, with an investment of 930 billion won, aiming to produce 30,000 units annually by 2027, reflecting its strategy to diversify energy platforms amid complex trade challenges.