President Jose Munoz, Interview with Korean Media at LA Auto Show
"Proactive Response to Rapidly Changing Market with 'Ppalli Ppalli' and 'Mirimiri'"
Jose Munoz, Global Chief Operating Officer (COO and Head of North America Region), who has been nominated as the next CEO of Hyundai Motor Company, stated that "the rapid expansion of Chinese electric vehicle companies must be met with technology."
Amid concerns over the global invasion of Chinese electric vehicle companies, Munoz believes that technology is the only way for Hyundai and the global automakers to survive. The COO expressed his determination to proactively respond to the rapidly changing market environment with a "quick and preemptive" approach.
Jose Munoz, Hyundai Motor Company's Global Chief Operating Officer (COO), is interviewing with the Korean press corps at the 2024 LA Auto Show held at the Los Angeles (LA) Convention Center in the United States on the 21st (local time). Photo by Hyundai Motor Company
On the 21st, Munoz held an interview with Korean reporters during the Los Angeles (LA) Auto Show Press Day, discussing future business directions. This was his first formal interview with the press since being nominated as the next CEO on the 15th. In a situation where prospects for next-generation power sources are divided, Munoz explained that companies with diverse technologies can respond flexibly.
He said, "The trend toward electrification will continue, and in that process, the bridging role could be played by hybrids, plug-in hybrids, or hydrogen fuel cell vehicles," adding, "There are challenges, but Hyundai sees this as an opportunity." Since Hyundai offers a wider variety of eco-friendly vehicle options than any other automaker, it can respond nimbly to changes in demand.
Until one or two years ago, the outlook on electrification was mostly optimistic. However, since the second half of last year, growth has slowed or stagnated in most markets except China. This is due to high costs and insufficient charging infrastructure. In major markets such as South Korea, the United States, and Europe, hybrids are gaining popularity. Initially expected to serve only as intermediaries due to their internal combustion engines, hybrids are now anticipated by the industry to dominate the eco-friendly vehicle market for the next several years due to the electric vehicle chasm (temporary demand stagnation).
Along with technology, he emphasized the basics of automakers such as services that customers can directly experience. Hyundai is recognized for having relatively superior quality competitiveness compared to Chinese companies, and it aims to enhance customer satisfaction by raising service levels as well. Munoz said, "One of the key dealer strategies introduced in North America over the past six years is the FBB strategy, which means doing less (Fewer), bigger (Bigger), and better (Better)." He added, "By attracting dealers in various regions, we have been able to invest in facilities, equipment, and related training to provide better service to customers."
Jose Munoz, Hyundai Motor's Global Chief Operating Officer (COO), is making a presentation on the press day of the 2024 LA Auto Show on the 21st (local time). Photo by Hyundai Motor
Regarding his appointment as the next CEO, Munoz attributed it to his proactive approach to Hyundai’s unique corporate culture centered on speed. He said, "One of Hyundai’s characteristics is the ‘ppalli-ppalli’ (quickly-quickly) culture," adding, "I usually prepare in advance, so I refined it to ‘ppalli-ppalli miri-miri’ (quickly-quickly and ahead of time)."
This reflects his determination to lead change at the forefront amid the rapidly evolving future mobility industry. Hyundai’s unique speed culture is also embedded in the recently launched Hyundai Motor Group Meta Plant America (HMGMA). Construction began in 2022 and was originally scheduled for completion in the first half of 2025. The completion date was moved up by more than six months. When the electric vehicle chasm issue arose during construction, the plant was planned to produce other eco-friendly models such as hybrids alongside electric vehicles. It was initially planned as an electric vehicle-only factory.
When Munoz joined Hyundai in 2019, the environment was challenging both internally and externally. In China, a key market where large-scale investments had been made, business suddenly collapsed due to political conflicts surrounding the deployment of the Terminal High Altitude Area Defense (THAAD) system. In the United States, large-scale class-action lawsuits and fines arose due to engine defects. In this situation, Munoz, known as the group’s leading "America expert," played a major role in the rapid recovery. He improved brand perception and increased the proportion of high-profit models. Even during the COVID-19 pandemic, when production was disrupted, he closely collaborated with headquarters to minimize production and customer delivery delays.
Hyundai Motor Company production line at the Alabama plant in the United States. Provided by Hyundai Motor Company
Although he has mainly worked in the United States, Munoz plans to increase his working hours in South Korea after assuming the CEO position next year. He said, "Chairman Chung Euisun of Hyundai Motor Group said he would like me to spend more time working in Korea, and I intend to do so," adding, "One of the core elements that can add value to the company is alignment with employees, so it is important to understand things at the same level."
Regarding business cooperation with General Motors (GM) in the United States, he refrained from specific comments, saying an announcement would be made soon. However, he added, "We plan to share vehicle supply and electrified vehicle technology by utilizing the production facilities both companies have, as well as volume effects related to purchasing." On the possibility of changes in electric vehicle demand due to discussions about the repeal of the U.S. Inflation Reduction Act (IRA), he said, "If it disappears equally for all companies, it will be an opportunity for Hyundai to perform better."
He stated that he does not intend to immediately change specific business strategies or directions. He said, "Since the strategies already being implemented are working well, I plan to continue executing the strategies prepared in advance by President Jang Jae-hoon," adding, "If necessary, I will make adjustments in the middle, and I believe gaining trust from our employees is a key to success."
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