Hyundai Motor Company Reroutes Shipments Around Cape of Good Hope as Hormuz Disruptions Delay European Supplies

According to Financial News, Hyundai Motor Company’s European plants are facing longer lead times for parts sourced from Korea due to congestion in the Strait of Hormuz. The company is reportedly considering increasing local production in Europe to ease supply chain risks.
U.S. outlets including logistics trade journal Transport Topics reported that Jose Munoz, CEO of Hyundai Motor Company, discussed the Strait of Hormuz in an interview on the 8th (local time). He said, "We diverted our vessels from their usual route to go around the Cape of Good Hope at the southern tip of Africa," adding, "As a result, our procurement lead times have increased significantly."
Munoz explained that the rerouting is part of a broader plan to shield the company from geopolitical crises, supply chain instability, and tariffs. He noted that the traditional model of shipping parts from Korea requires passing through the Strait of Hormuz, and said Hyundai Motor Company is therefore considering increasing European sourcing over the long term instead of relying on Korean-made parts.
Munoz said, "We are trying to verify demand and supply and maximize our production capacity so that we do not lose output, but it is not easy." He went on to say that internal supply chain meetings at Hyundai Motor Company, which used to be held annually, are now taking place almost every week. "It has never been as difficult as it is now," he remarked.
Munoz also predicted that demand in the electric vehicle (EV) market will remain steady. He said that although Hyundai Motor Company had initially planned to produce only EVs such as the Ioniq 5 and Hyundai Ioniq 9 at its plant in the U.S. state of Georgia, it has revised that plan and will build hybrid vehicles (HEV) there this year and extended-range electric vehicles (EREV) starting next year.
At the same time, Munoz said the company has begun producing robotaxis this year for self-driving car operator Waymo, and that volumes are expected to reach tens of thousands of units in the future.
Hyundai Motor Company plans to increase its annual vehicle production in the United States to 1.2 million units by 2030, up 300,000 from current levels, and to localize 80% of its supply chain. The company aims to lessen the impact of tariffs and supply shocks through this strategy. "Globalization is over. It is completely over," Munoz stressed.
pjw@fnnews.com Park Jong-won Reporter