Hyundai Motor Group has created a new division focused on developing future business strategies and leading the company’s expansion through mergers and acquisitions (M&A), according to local reports citing an industry source.
The Future Strategy Division comes under HMG’s existing Planning and Coordination Division, which is led by vice chairman Chang Jae-hoo, and will also co-ordinate the group’s investments in new startup companies. The new division is expected to strengthen the automaker’s capabilities in terms of identifying and implementing new investment opportunities.
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The reports suggested that the new division, headed by Hyundai Motor Company vice president Jung Ho-geun, will explore and develop new business opportunities in areas such as artificial intelligence (AI), robotics, electric vehicles, autonomous driving and urban air mobility.
The Planning and Coordination Division will oversee the new Future Strategy Division, while also focusing on planning and coordination across the group. Its 15 management teams will continue to oversee sustainable management, carbon-neutral strategy, back-office services and transparent management.
HMG has a budget of KRW14.4bn (US$1bn) for strategic investments through M&A activity, including minority stake purchases, for the ten-year period ending in 2033. This is in addition to its capital expenditure and R&D budgets for the same period.
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