SEOUL– Hyundai Mobis Co., South Korea’s leading auto parts maker, said Tuesday it will invest up to 10 trillion won (US$7.9 billion) in future mobility solutions in the next three years.
Hyundai Mobis will inject 5 to 6 trillion won in electrification and core components, and 3 to 4 trillion won in autonomous driving and the advanced driver assistance system (ADAS) and software development, the company said in a statement.
The company will also put aside 5 trillion won in cash to respond to growing market uncertainties amid a global economic slowdown, it said.
On the same day, its board of directors voted to reelect Hyundai Motor Group Executive Chair Euisun Chung as executive director and recommended James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM), as outside director, the company said.
The appointments will be put up for a vote at a shareholders meeting next month.
On the business side, Hyundai Mobis aims to achieve US$5.36 billion worth of orders from global carmakers, except for its captive buyers Hyundai Motor Co. and Kia Corp., in 2023.
The annual target is up from $4.65 billion orders obtained from overseas in 2022.
Hyundai Mobis earns about 90 percent of its sales from Hyundai Motor and Kia, with 10 percent coming from other carmakers.
Hyundai Mobis is a key affiliate of Hyundai Motor Group, and it holds a 21.43 percent stake in Hyundai Motor.
For all of 2022, its net profit rose 5.3 percent on-year to 2.487 trillion won, helped by robust sales of core EV parts and other high-end components amid recovering global vehicle production and improving chip supplies.
To enhance shareholder value, the company will buy back 150 billion won worth of treasury stocks and cancel all of them this year, the statement said.
Source: Yonhap News Agency