Matt (3:15)

I will tell viewers who don't know body on frame means it's a much more robust vehicle. That's a truck, right? As opposed to the unibody cars. And you need that in this region because of all the potholes and broken down roads that that take a beating. But it's one that has long been dominated by US players. Because of this tax we have a 25% tariff on light duty TR built overseas that come in here. Where would you build such a body on frame vehicle?

Jose Munoz (3:45)

Definitely here in America. These would be part of our strategy to be localized, to be vertically integrated, part of the $26 billion. So we want to make it here with our supplier base and then to the taste of the American consumer.

Unidentified Interviewer (4:00)

These though I mean are very long term plans that you've put in place. So I'm assuming short term fluctuations in consumer behavior isn't going to change that. But are you seeing changes in consumer behavior now having deal here in the US with gasoline above $4 a barrel?

Jose Munoz (4:15)

Yeah, we see that all the time. So our strategy is being different to other OEMs in the sense that we want to offer the customers what they want, when they want it. And as such we not only invested on EVs but also on hybrid. We're going to start producing hybrids this year in our H&GMA plant in, in Savannah. And we have also announced that we will introduce er, EV extended range EVs next year in the country. So that's how we came to the conclusion that you know, if consumers want more EVs we have to produce more EVs. They want more hybrids, we have to produce more more hybrids. If they want the for example a bolder type of vehicles we will. But to your question, we have seen a significant change in the dynamics. So for example in the month of March we've seen an increase of EV sales of about 40% compared to February. So definitely when the American consum consumer sees an increase in fuel prices, they try to move to solutions which are more friendly in terms of cost. Right. Especially in states like California.

Matt (5:28)

We saw today that this administration isn't going to give any help on aluminum and steel tariffs to automakers that produce here. Are you penalized to some extent for producing a car here because if you made it in Korea, you might get just a 15% flat tax. And when you build a car here, you've got to pay the 50% on aluminum, 50% tariffs on steel. You've got to pay the tariffs on all of the components that come together. And Ford says they end up actually paying more to build a comparable vehicle than, than than you do when you make it in South Korea.

Jose Munoz (6:00)

Well, that's a very good point. That, that's why in our case the strategy is very simple, is a localization and that's why we are going to produce this boulder with steel. Made in America saw full integration. The steel, the logistics, the components, the manufacturing, the workers, everything is going to be made in America, including the steel.

Matt (6:22)

I have to ask you about Magma, which is the your answer to AMG or BMW M. I saw the wingback concept yesterday, which was fantastic. I know you're going to race at Le Mans, which is increasingly becoming like the Davos of car manufacturers. Can you really compete against BMW? Can you compete against Mercedes? Can you compete against Audi with that vehicle here, with that brand here in America?

Jose Munoz (6:48)

Without a doubt. So last year we saw an all time record 82,000 Genesis in this market and then last year we also achieved our 1 million Genesis sales. So we've been the fastest growing luxury OEM globally because we did that in only nine years and six months. So faster than Tesla, faster than other luxury competitors. So and definitely as a part of the evolution as a next frontier for our luxury brand, we wanted to get into the competition. So the WAR endurance championship. So you have an open invitation, Matt, to be able to, to join us in Le Mans and then it needs to be real. That's why we came up with the Magma Orange and the Magma concept which if you saw the number GV60 gives you standard mode, more than 600 horsepower, but if you push the boost motor so you're going to get to 650 horsepower for about 15 seconds. So this is the Bloomberg Boost or the mat boost. Like 3.4 seconds to make it to

Unidentified Interviewer (8:03)

100 miles is F1 next.

Jose Munoz (8:05)

That's up on next year, so you can, you can try. So we're going to be credible contender and he's going to be real performer.

Matt (8:12)

All right, Jose, great having you here. Thanks so much for joining us and I look forward to seeing you on the track at Le Mans as well. Jose Munoz there, the CEO of Hyundai and Genesis. Be sure to listen to Hot Pursuit. By the way, that's my autos podcast with Hannah Elliott and you saw some of the video of me there at the car show with Christina Rafini. CHRISTINA raffini, Because Bloomberg this weekend is going to show a big piece about what we saw and did at the New York International Auto show. And it was a lot of fun.

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