Hyundai Motor Group announced on April 15, 2025, the appointment of former U.S. Representative Drew Ferguson as the new head of its Washington office, effective May 1, 2025. This strategic move aims to bolster the company’s responsiveness to the escalating trade barriers in the United States, particularly under the policies of the Trump administration.
Drew Ferguson, a former four-term Republican congressman from Georgia, will oversee communications between the U.S. government and Congress and Hyundai Motor Group. His role as senior vice president of government affairs marks a significant step for the company, which previously lacked a centralized government relations position.
Ferguson represented Georgia’s 3rd congressional district from 2017 until the end of 2024, during which time he served as the chief deputy whip for House Republicans from 2019 to 2023. He is known for his strong support of the first Trump administration’s policies, focusing on revitalizing U.S. manufacturing, job creation, and tax reform. His deep understanding of the legislative process, coupled with his experience in various policy coordination roles, positions him well to navigate the complex U.S. trade environment.
Prior to his congressional career, Ferguson served as mayor of West Point, Georgia, from 2008 to 2016, a city that is home to Kia’s U.S. manufacturing plant. This local connection is expected to provide Ferguson with unique insights into the automotive industry and its challenges.
Hyundai Motor Group's decision to create a senior government affairs position reflects its strategic initiative to enhance its responsiveness to the increasingly volatile U.S. trade environment. Despite the group’s $21 billion investment pledge in the U.S., the recent implementation of "nonnegotiable" 25 percent tariffs on imported vehicles and parts, which took effect on April 3, has posed significant challenges for the company. With over 60 percent of Hyundai and Kia's U.S. sales in 2024 coming from imported vehicles, these tariffs have dealt a considerable blow to their operations.
In a recent Oval Office meeting, former President Trump indicated a potential exemption for certain imported auto parts, such as engines and transmissions, 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 stated, highlighting the need for the automotive industry to adapt quickly to new regulations. This development underscores the importance of strong government relations, a focus that Ferguson will prioritize in his new role.
Industry insiders suggest that Ferguson’s appointment comes at a crucial time for Hyundai Motor Group, as the company aims to strengthen its automotive, robotics, and urban air mobility businesses in the U.S. An official from Hyundai Motor Group’s Seoul headquarters remarked, "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 U.S. government." This strategy is particularly important given the current trade climate.
Experts believe Ferguson’s experience will likely accelerate Hyundai Motor and Kia’s tariff countermeasures, including pricing strategies in response to the turbulent U.S. auto landscape. Lee Ho-geun, a professor of automotive engineering at Daeduk University, noted that despite the impact of tariffs, Hyundai Motor and Kia have pledged to freeze their vehicle prices in the U.S. for the next couple of months. "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," he added.
Hyundai Motor’s U.S. subsidiary has announced that it will maintain current retail vehicle prices until June 2, 2025. However, during a recent investor meeting, both Hyundai Motor and Kia hinted at possible price hikes in the U.S. in the latter half of the year, citing increased cost pressures from the ongoing tariff shock.
Ferguson’s background in both local and national politics, combined with his understanding of the automotive industry, positions him as a critical player in Hyundai Motor Group’s efforts to navigate the complex and often challenging regulatory landscape. His appointment is seen as essential for the company to effectively manage its relationships with U.S. lawmakers and respond to the evolving trade environment.
As Hyundai Motor Group continues to adapt to the challenges posed by tariffs and trade policies, the company remains committed to its investment strategy in the U.S. The appointment of Drew Ferguson is a clear indication of the group's dedication to enhancing its government relations and ensuring its interests are effectively represented in Washington.
In conclusion, as the automotive industry faces unprecedented challenges due to trade barriers, the strategic appointment of Drew Ferguson signifies Hyundai Motor Group's proactive approach to safeguarding its interests and fostering stronger ties with the U.S. government.
