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Hyundai Mobis to set up 2 manufacturing-focused units

Corporate Newsroom 16:47 August 18, 2022

SEOUL, Aug. 18 (Yonhap) -- Hyundai Mobis Co., South Korea's biggest auto parts maker, said Thursday it will set up two wholly-owned manufacturing-centered units to preemptively respond to a burgeoning future mobility market.

Hyundai Mobis will integrate its subjected business functions and absorb its subcontractors to establish two separate business entities, one focusing on modules and the other on core auto components, the company said in a statement.

"Employees of our subcontractors in the module and auto component partnership can decide to join the integrated companies or not," a company spokeswoman said, without elaborating.

A vehicle requires three major modules -- cockpit, chassis and front-end modules -- while core auto components include air bags, lamps, a braking system, a steering wheel system and parts needed for electrification.

Hyundai Mobis will focus on R&D projects for future mobility solutions in line with its parent firm Hyundai Motor Group's electrification push, the statement said.

The company plans to hold an extraordinary shareholders meeting in September to seek approval of the plan and aims to launch the two separate manufacturing units in November, it said.

Hyundai Mobis is a core affiliate of Hyundai Motor Group, which also has Hyundai Motor Co. and Kia Corp. under its wing. Hyundai Mobis owns a 21.43 percent stake in Hyundai Motor.

Hyundai Mobis earns about 90 percent of its sales from Hyundai Motor and Kia, with 10 percent coming from other carmakers.

Hyundai Mobis to set up 2 manufacturing-focused units - 1

kyongae.choi@yna.co.kr
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