View all newsletters
Receive our newsletter - data, insights and analysis delivered to you

Hyundai Mobis to split manufacturing into two subsidiaries

Confirmation of reports earlier this week that Hyundai Mobis will be split

Hyundai Mobis Company confirmed this week it plans to restructure its automotive component operations into two separate subsidiaries, as it looks to improve operational efficiency in a fast-growing and increasingly demanding mobility market.

South Korea’s largest auto parts maker said in a statement it plans to establish two separate wholly-owned business entities, one focused on modules and one on core components.

The company makes cockpit, chassis and front-end modules, while its core auto components include airbags, lighting, braking systems, steering wheel systems and electrifical/electronic systems.

The company said it will invite key subcontractors to join these companies and integrate their operations to improve efficiency. Hyundai Mobis itself will then focus on R&D for future mobility solutions and support its parent company Hyundai Motor Group’s (HMG) electrification drive. HMG accounts for 90% of Hyundai Mobis’ revenues, with other carmakers accounting for the remainder.

A company spokesperson said “employees of our subcontractors in the module and auto component partnership can decide to join the integrated companies or not. Although personnel expenses will rise temporarily, in the longer term the business competitiveness is expected to improve”.

Hyundai Mobis will hold an extraordinary shareholders’ meeting in September to seek approval of the plan, with a view to launching the two manufacturing subsidiaries in November.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto