South Korea’s Hyundai Mobis Aims to Separate Key Businesses Into New Units

By Reuters
Reuters
Reuters
August 18, 2022 Updated: August 18, 2022

SEOUL—South Korean auto parts maker Hyundai Mobis Co. Ltd. said on Thursday it was considering separating its modules and key parts production businesses into new wholly owned units in an effort to enhance each segment’s expertise and maximize efficiency.

Hyundai Mobis, an affiliate of automaker Hyundai Motor Co., said in a regulatory filing it aims to hold a board meeting in September to approve plans to separate the businesses, expected to be launched in November.

The new units will be in charge of manufacturing operations, including facility and labor management, while the central management of the company will be focusing on securing future mobility technologies, as well as developing new products.

Shares of Hyundai Mobis closed down 3 percent at their lowest since July 13 while the benchmark KOSPI fell 0.3 percent, before Hyundai Mobis disclosed its plans.

By Joyce Lee and Heekyong Yang

Reuters