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Hyundai Mobis to spin off module and parts production

Yusin Hu, DIGITIMES Asia, Taipei 0

Hyundai Mobis H2Go using its e-corner module Credit: AFP

Hyundai Mobis is reportedly spinning off parts and module production units into two subsidiaries in addition to its current subsidiaries – HL Greenpower, Hyundai IHL, and GIT.

Korea local news outlet ET News updated on the 16th of August that the company confirmed it is considering business restructuring; however, no decisions have been made.

The business restructuring plan will leave Hyundai Mobis with core businesses including after-sale services and the R&D department. The subsidiaries will be responsible for production.

For the second quarter this year, Hyundai Mobis's sales of module and core parts increased by 19.3% on-year to KRW9.9 trillion (US$7.55 billion) thanks to electrification.

Profit prospect

Hyundai Mobis said at the quarterly conference call last month that profits are expected to rebound as transportation costs stabilize and that new orders from overseas carmakers will be reflected in sales growth in three to four years, according to ET News.

According to the reports, the company plans to increase sales of high-value-added products such as vehicle infotainment systems (IVI) and head-up displays (HUD).

The tier-1 automotive supplier posted quarterly revenue of KRW12.3 trillion (US$9.44 billion) for the second quarter this year, rising nearly 20% on year. In the same quarter, operating profits declined by 28.4% on-year to KRW403.3 billion due to increasing transportation costs and rising semiconductor prices; net profits increased to KRW769.7 billion.

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