Chairman Euisun Chung of Hyundai Motor Group visited Brazil, the largest economy in Latin America, to meet with Brazilian President Luiz Inácio Lula da Silva.
Hyundai Brazil, the only production base of Hyundai Motor Group in Latin America, is a spearhead for penetrating the Latin American market and is located in Brazil.
The meeting between President Lula and Chairman Chung took place at the presidential office in Brasília on the 22nd (local time), attended by Brazilian Vice President Geraldo Alckmin and Minister of Industry, Commerce and Tourism, as well as José Muñoz, President of Hyundai Motor.
President Lula began his social activities after being elected chairman of the Brazilian Metalworkers’ Union in 1975, and assumed office as the first three-term president in Brazilian history after winning the presidential election in 2022.
Chairman Chung expressed gratitude for the Brazilian government’s continuous interest and support for the Hyundai Brazil plant and introduced various efforts made by Hyundai Brazil for its employees and the local community.
He said, “Hyundai Motor Group aims not just to sell cars but to grow together with Brazil,” and added, “We are engaged in various social contribution activities for the Brazilian community, including free dental treatment and reforestation programs.”
Chairman Chung continued, “The Hyundai Brazil plant prioritizes the happiness of employees by creating a safe working environment, regularly conducting joint seminars and meetings between labor and management, and achieving a non-disruptive settlement of wage negotiations for 11 consecutive years.”
With employee-friendly systems in place, the Hyundai Brazil plant received a certification for being an excellent employer awarded by the Employment and Labor Relations Bureau of São Paulo State.
Concerning the Brazilian government’s decarbonization policy, Chairman Chung stated, “I am aware of the Brazilian government’s efforts to research, develop, and apply eco-friendly energy sources,” and expressed deep resonance with Brazil’s various eco-friendly policies, saying, “If there are areas where Hyundai Motor Group can contribute in hydrogen and eco-friendly mobility, we will actively participate.”
Chairman Chung announced that Hyundai Brazil and local partners plan to invest $1.1 billion in eco-friendly areas, including hydrogen and future technologies by 2032.
In December of last year, Brazil announced the “Green Mobility Innovation (MOVER) Program,” offering a total of 19 billion Reais (approximately 5.1 trillion KRW) in tax reductions and subsidies for car manufacturers investing in the decarbonization sector, leading to a series of investment plans from global automakers in Brazil.
Chairman Chung mentioned, “Hyundai Motor Group is pursuing a rapid electrification strategy encompassing electric and hydrogen vehicles to achieve net-zero carbon emissions, and hydrogen energy is a key means of responding to climate change, as well as an important resource that complements electrification.”
He added that Hyundai Motor Group is pushing forward with AAM (Advanced Air Mobility) and SMR (Small Modular Reactor) as part of securing future mobility leadership and market expansion while strengthening technical competitiveness.
Chairman Chung expressed confidence that AAM is a suitable future mode of transportation for Brazil’s transport environment and hopes for collaboration in the field of SMR.
Regarding a scheduled meeting with Professor Carlos Gilberto Calil Júnior, President of the University of São Paulo, later that afternoon, Chairman Chung stated, “We will also collaborate for joint research and talent development with Brazilian universities.”
President Lula emphasized the Brazilian government’s tax reforms and investment environment improvements, stating, “Hyundai, which invests in eco-friendly hydrogen sectors and technologies, is an important company growing in Brazil.”
The Brazilian government is implementing various eco-friendly policies aimed at reducing greenhouse gas emissions by 50% compared to 2005 levels by 2030 and achieving carbon neutrality by 2050.
Hyundai Motor Group actively pursues growth strategies for new leaps in the Brazilian market, positioning itself as a leading brand in electrification while seeking business opportunities using its advanced hydrogen technology.
Specifically, Hyundai intends to strengthen its leadership in electrification in the Brazilian market by introducing globally acclaimed electrified vehicles, including the Hyundai Ioniq 5 and Kona Electric, both of which won three categories in the 2022 World Car Awards.
Kia will also launch its dedicated electric vehicle, the EV5, which is slated for mass production this year, further expanding the electrification lineup in Brazil.
In addition, the company plans to develop a hybrid FFV (Flexible-Fuel Vehicle) powertrain optimized for the Brazilian market as part of its response to the Green Mobility Innovation Program.
*Hybrid FFV: Environmentally friendly vehicles that are equipped with a hybrid system on flexible-fuel vehicles using a mixture of ethanol or methanol and gasoline.
Hyundai Motor Group also aims to expand its global hydrogen network through Brazil, a leader in the renewable energy market in Latin America.
The group plans to actively create new hydrogen-related businesses in the Latin American region, including pioneering hydrogen commercial vehicles and supplying hydrogen fuel cell systems, while strengthening its collaborative network to build a hydrogen ecosystem in Brazil and the region.
To this end, the group established a dedicated organization for hydrogen business in Latin America at the end of last year and is actively exploring the hydrogen market.
Hyundai Motor Group is leading the global hydrogen mobility ecosystem expansion through continuous investment and development of technologies across all stages of the hydrogen value chain, having announced comprehensive solutions to accelerate the transition to a hydrogen society during last month’s 2024 CES with the theme “Transitioning to Hydrogen and Software: Ease Every Way.”
Additionally, the group is accelerating the internalization of AAM technology and establishing market ecosystems to secure future mobility leadership. It has established an independent U.S. AAM entity, Supernal, and showcased a physical model of the next-generation AAM vehicle ‘S-A2’, which is being developed for commercialization by 2028, at the 2024 CES.
Hyundai is also securing independent technological prowess and commercialization in the field of SMR, which is being spotlighted as the next-generation future energy source. It is particularly participating in the first commercial SMR design in the U.S. in partnership with Holtec International, a U.S. nuclear power specialist.
Hyundai Motor Group is conducting authentic social contribution activities for the communities in Brazil.
For over ten years, the group has operated the Sorisso Cidadao program, providing free dental services to over 70,000 children and public security officials in the Piracicaba region, as well as offering science and technology classes, including coding, to students from public schools in Piracicaba.
Additionally, it is working on the Ioniq Forest campaign to restore tropical rainforests and conducting joint research with local institutions, including the University of São Paulo.
Following his meeting with President Lula, Chairman Chung met with university representatives, including Professor Carlos Gilberto Calil Júnior, to discuss talent development and academic-industry collaboration in the eco-friendly sector.
Chairman Chung emphasized, “Hyundai Motor Group aims to address energy inequality through hydrogen energy and expedite the transition to a hydrogen society,” expressing hope for leading the clean energy market in Brazil through close cooperation with the University of São Paulo, which possesses high competitiveness in various eco-friendly fields.
Founded in 1934, the University of São Paulo has greatly contributed to Brazilian society, producing twelve presidents since its inception.
In 2016, the university established the Greenhouse Gas Innovation Center, conducting various eco-friendly research and projects encompassing hydrogen production using second-generation ethanol, greenhouse gas reduction, bioenergy utilization, and carbon capture and storage technologies.
Chairman Chung dedicates time to meet with presidents of key universities directly during his overseas visits for in-depth discussions.
Last year, he also had meetings with the presidents of Georgia Tech in the U.S. and Hanoi National University in Vietnam to discuss securing future technologies, nurturing and discovering overseas talent, and academic-industry cooperation in new business areas.
Meanwhile, on the 23rd (local time), Chairman Chung plans to visit the Hyundai Brazil plant after meeting with São Paulo Governor Tarcísio de Freitas, to inspect the production site and assess the state of operations in Latin America and the medium- to long-term eco-friendly mobility strategy.
Lee Sang-jin daedusj@autodiary.kr