현대차, 무역 갈등 속 워싱턴 지부장에 전직 하원의원 드류 퍼거슨 영입

[홀랜]

New hire to help Korean auto giant bolster responsiveness to escalating US trade barriers

Drew Ferguson, senior vice president of government affairs at Hyundai Motor Group (Hyundai Motor Group)

Hyundai Motor Group said Tuesday that it has appointed Drew Ferguson, a former four-term Republican congressman from Georgia, as the head of its Washington office, as part of a strategic move to navigate looming hefty automotive tariffs in the US.

Effective May 1, Ferguson will assume the role of senior vice president of government affairs at Hyundai Motor Group, where he will represent the auto giant’s interests and actively engage with the US government and Congress.

The group previously did not have a centralized government relations position. Robert Hood, former deputy assistant secretary of defense for legislative affairs, and Christopher Wenk, former senior director of international policy at the US Chamber of Commerce, previously handled government communications for Hyundai Motor and Kia, respectively.

“We’ve recruited Ferguson for his deep understanding of key industrial and trade policies under the Trump administration, aiming to establish a more effective communication channel with the US government,” said an official from Hyundai Motor Group’s Seoul headquarters. “In addition to tackling tariffs, he is expected to play a key role in strengthening the company’s automotive, robotics, and urban air mobility businesses in the US.”

Ferguson represented Georgia’s 3rd congressional district from 2017 to 2024 and served as chief deputy whip for House Republicans between 2019 and 2023. A staunch supporter of the first Donald Trump administration’s policies, he focused on reviving US manufacturing, job creation and tax reform. Prior to his time in the US Congress, from 2008 to 2016 Ferguson was mayor of West Point, Georgia — home to Kia’s US manufacturing plant.

Industry insiders note that creating a new senior government affairs position in Washington reflects Hyundai Motor Group’s strategic initiative to enhance its responsiveness to the increasingly volatile US trade environment.

Despite the group’s $21 billion investment pledge in the US, “nonnegotiable” 25 percent tariffs on imported vehicles and parts, introduced by Trump, took effect on April 3. The move has dealt a blow to Hyundai Motor and Kia, which heavily rely on exports, with over 60 percent of their US sales in 2024 coming from imported vehicles.

On Monday, Trump signaled a possible exemption for certain imported auto parts, such as engines, transmissions and powertrains, which are set to face the same 25 percent levy starting next month.

“I’m looking at something to help car companies with it,” Trump said during a meeting with reporters in the Oval Office. “They’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time because they’re going to make them here.” This follows Trump’s recent decision to exempt Mexican and Canadian auto parts from the tariffs, a move seen as a lifeline for US carmakers like General Motors with major factories in those regions.

“Trump’s indication of a potential waiver highlights the value of strengthening government relations through Ferguson’s appointment,” said an industry source familiar with the matter, speaking on condition of anonymity. “He is well-positioned to monitor these developments closely and devise effective strategies to leverage the situation.”

Hyundai Motor Group has been bolstering its capabilities to proactively address trade challenges posed by Trump’s second term.

Earlier this year, the group appointed Sung Kim — who has advised the company since January 2023 — as president of Hyundai Motor Co. Kim, a former US diplomat and special representative for North Korea, reportedly played a pivotal role in arranging Hyundai Motor Group Executive Chair Chung Euisun’s announcement of the company’s US investment plans alongside Trump last month.

This marked the first time since Trump’s return to the White House that a Korean conglomerate announced an investment strategy at the White House. Chung also became the first Korean business leader to have an official meeting with Trump in this term.

Experts believe Ferguson’s appointment will likely accelerate Hyundai Motor and Kia’s tariff countermeasures, including pricing strategies, in response to the turbulent US auto landscape.

“Despite the impact of tariffs, Hyundai Motor and Kia have pledged to freeze their vehicle prices in the US for the next couple of months,” said Lee Ho-geun, a professor of automotive engineering at Daeduk University. “While they aim to clear existing inventory, it’s critical to negotiate a reduction in tariffs to below 10 percent before the price freeze ends, to minimize the blow to profitability.”

Hyundai Motor’s US subsidiary has announced that it will maintain current retail vehicle prices until June 2. However, during a recent investor meeting, both Hyundai Motor and Kia reportedly hinted at possible price hikes in the US in the latter half of the year, citing increased cost pressures from the ongoing tariff shock.

hyejin2@heraldcorp.com