Download
Genesis to boost profits via Hyundai Motor
Group ties
By Lee
Min-hyung, The Korea Times - Genesis will shore up profitability against
tariffs from the United States by deepening engineering and manufacturing ties
with Hyundai Motor Group, key executives from the Korean auto brand said
Thursday (local time).
Hyundai Motor
CEO Jose Munoz pointed to what he described as long-running technical cost
reduction programs, which he said allow the group’s auto brands — Hyundai
Motor, Kia and Genesis — to standardize parts and improve quality while
lowering expenses at the same time.
Munoz outlined
a broad list of areas where the carmakers are pursuing shared savings —
engineering, manufacturing, design, production, supplier contracts and
distribution.
"It is
fair to say that the group has done way better than most of our competitors
(despite the tariff shock)," Munoz told reporters during a press
conference, a day after the Genesis GV90 world premiere.
He cited
continued growth of Hyundai Motor sales to back up the strategy. The carmaker
reported record quarterly sales of 49.21 trillion won ($35.28 billion) between
April and June. The sales include those from Genesis.
The renewed
focus on synergies and cost discipline follows a period of margin pressure tied
to the 15-percent auto import tariff the Korean automakers face in the U.S.
Munoz
described the cost reduction and group-wide synergy measures as part of an
effort to reinforce the group's ability to meet its broader multi-year
strategic commitments.
"We are
trying to utilize every single factor, whether external or internal, as an
opportunity to get our company stronger," he said.
GV90 to anchor
Genesis' US expansion push
Genesis is
continuing its growth in the U.S. market, driven by competitive products and a
localized branding strategy.
Since entering
the U.S. market in 2016, Genesis has sold more than 454,000 vehicles through
July this year. Annual sales have set new records for five consecutive years
since 2021.
SUVs have been
the key growth driver, accounting for 61.5 percent of Genesis’ cumulative U.S.
sales through July. The GV70, including its electrified version, and GV80,
including the coupe, rank first and second in Genesis’ U.S. sales, with
combined sales for both models exceeding 268,000 units.
Genesis plans
to expand its SUV lineup with the newly launched flagship GV90 electric SUV and
high-performance GV60 Magma, while adding hybrid models to meet broader demand.
The GV90 made
its world debut at San Francisco’s Palace of Fine Arts on Wednesday,
highlighting the strategic importance of the U.S. market for the brand’s
sustainable growth.
The GV90 is
Genesis’ first symbolic model equipped with a coach-door system called Arch
Gate.
“The Arch Gate
is specifically for the GV90 Neolun and we have no plans to come to equip other
models with Arch Gate for now,” said Luc Donckerwolke, chief creative officer
at the carmaker.
Other key
executives from Genesis also displayed the carmaker’s long-term vision for
sustainable global growth.
“Korea and the
U.S. are most important markets for Genesis to achieve its global sales goal of
350,000 vehicles by 2035,” Sean Lee, global head of Genesis, said during the
press conference.
He said
Genesis will also adopt a similar strategy to Hyundai Motor Group by
diversifying electric-focused powertrains, such as all-electric vehicles,
hybrids or extended-range electric vehicles in the U.S.
“Coupled with
our diversified powertrains in North America, we will also focus on expanding
brand interactions with customers to achieve the sales target,” he said.
