Hyundai Motor explores deeper ties with Toyota to counter US tariff risks

Hyundai Motor Group Executive Chair Chung Euisun, right, poses with Toyota Motor Chairman Akio Toyoda during the Hyundai N x TOYOTA GAZOO Racing Festival at Everland Speedway in Yongin, Gyeonggi Province, Oct. 27, 2024. Courtesy of Hyundai Motor Group

Hyundai Motor Group Executive Chair Chung Euisun is expected to explore new business opportunities in a possible meeting with executives from Toyota Motor on the sidelines of this year’s Trilateral Executive Dialogue (TED) in Tokyo.

Chung and a group of Korean business moguls will attend the two-day economic dialogue starting Tuesday. This year’s TED holds strategic importance to both Korea and Japan, as they are now exposed to mounting external trade risks triggered by tariffs from the United States.

Hyundai Motor and Japan’s Toyota in particular find themselves in the same position, as the U.S. decided to impose auto import tariffs of 15 percent to Korea and Japan. This has forced both automakers to shoulder unexpected costs for their U.S. businesses.

Following multiple meetings between top management of the two firms last year, there stands a possibility for Chung to meet with Toyota Motor Chairman Akio Toyota during his visit to the Japanese capital.

In October last year, the Toyota chairman visited Korea to attend the Hyundai N x TOYOTA GAZOO Racing Festival and discussed potential partnerships with Hyundai Motor during his official meeting with Chung.

Chung was also photographed shaking hands with Akio at the World Rally Championship motorsports event in Japan the following month.

It remains unclear whether the Toyota chief will participate in the TED event, but he is likely to have a closed-door meeting with Chung to seek out joint measures to counter the U.S. tariff risks.

Earlier, Hyundai Motor and Toyota reached a consensus to closely partner with each other in areas such as hydrogen energy, robots, motorsports and auto parts.

Industry officials also underscored the need for the two top executives to strengthen their strategic alliance to counter escalating trade risks during the presidency of Donald Trump.

“Once Hyundai Motor and Toyota Motor expand partnerships into more areas, they can exude huge influences across the global auto industry,” an industry official said.

“For instance, they can reduce manufacturing costs if they forge ties in joint development for key auto parts, which will enhance their global competitiveness to a higher level and defend themselves against U.S. tariff risks to some extent.”

Hyundai Motor and Toyota Motor have many things in common; both carmakers have a complex powertrain portfolio encompassing internal combustion engines, hybrids, electric vehicles and even hydrogen cars. No other automakers in the world are capable of producing cars with all of the powertrain types.