Hyundai Motor Company is planning to restructure its governance structure by purchasing the share of Hyundai Mobis, the core of the circulating investment ring, directly from the founding family instead of moving to a holding company.
For this, Hyundai Mobis will split up some divisions and transfer them to Hyundai Glovis.
Hyundai Mobis announced on the 28th the decision to split its after-sales (A/S) parts business and its domestic module manufacturing business and transfer them into Hyundai Glovis.
A/S parts business specializes in supplying repair parts to Hyundai•KiaMotors. The domestic module business produces and supplies chassis and cockpit modules for automobiles and then delivers them to Hyundai•Kia Motors.
After handing over two of the three business categories to Hyundai Glovis, Hyundai Mobis plans to focus on the core parts manufacturing business. The main business will apply high-tech components and sensors to self-driving and futuristic cars.
The partition merging of Hyundai Mobis and Hyundai Glovis is the starting point for the corporate governance reconstruction of the Hyundai Motor Company.
After handing over the business, Hyundai Mobis will hold a premium as a real holding company at the top of its corporate governance structure.
Hyundai Glovis is expected to raise its corporate value by taking the business division. Furthermore, for a win-win merging decision, Hyundai Motor Company’s Vice president Chung Eui-sun is likely to buy Kia shares in Hyundai Mobis with the funds from the sale of Hyundai Glovis shares.
