Hyundai Motor Group seeks to overcome US tariff with large SUVs

Hyundai Motor and Kia are accelerating efforts to reduce the impact of U.S. tariffs by expanding its lineup of large hybrid SUVs. Hyundai Motor Group’s three affiliates — Hyundai Motor, Kia and Genesis — are rapidly adding hybrid variants to their profitable, large-size SUV lineups in a bid to counter earnings shocks this year caused by the imposition of a 25-percent tariff on car imports to the U.S. After Korea and the United States completed their high-profile negotiations late last month, the carmakers’ tariff burden has fallen to 15 percent as of Nov. 1. In response, the Korean automakers are set to maximize U.S. sales of large hybrid SUVs, which typically offer higher profit margins than smaller cars with internal combustion engines. Hyundai Motor is poised to increase exports of its hybrid Palisade SUVs on strong U.S. demand. In October, Hyundai Motor America sold 9,549 Palisade SUVs, up 6 percent from the previous year. The carmaker started sales of the hybrid version of the vehicle the same month. Kia also recently launched a hybrid version of its fully-redesigned TelluridWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times