Hyundai Motor made a major U-turn on its publicly announced restructuring plan this week after seeing the market's reaction to its plans and after consulting with major shareholders.

The automaker said it no longer planned to break up its Hyundai Mobis automotive component and technology subsidiary and merge parts of it with its logistics subsidiary Hyundai Glovis.

Hyundai Mobis and Hyundai Glovis also cancelled a meeting planned for 29 May where shareholders were due to vote on the restructuring plan originally announced at the end of March.

A last ditch attempt to salvage the restructuring plan was made last week by vice-chairman Chung Eui-sun when he visited New York to meet with investors.

The restructuring plan entailed splitting Hyundai Mobis' module and aftermarket business and merging the latter with Hyundai Glovis. This would have allowed Hyundai Mobis to focus on its core original equipment and R&D operations and spearhead the automaker's future growth drivers including autonomous vehicles and connected cars.

Hyundai Motor Group vice chairman Chung Eui-sun said the group would consider more closely the views of shareholders, markets and other interested parties before making major decisions on the group's future.

He acknowledged there had been insufficient communication with shareholders and the market during the preparation phase of the restructuring plan.

He also confirmed a revised and improved restructuring plan to enhance business competitiveness and improve corporate governance would be presented to shareholders in due course.

Some institutional investors had called upon the group to adopt more of a holding company structure and there was also concern that the balance of the merger heavily favoured enhancing the value of Hyundai Glovis which is more than 23% owned by Chung.