South Korea’s leading auto parts manufacturer Hyundai Mobis expected to increase its cash holdings to KRW9 trillion (US$7.8bn) over the next three years to fund its investment in future vehicle technologies, a company executive said.
Hyundai Mobis vice-president Ko Young-suk said he was confident the company would increase its capacity to step up investments in leading edge technology to support the growth strategies of its main clients Hyundai Motor and Kia Motors.
Hyundai Mobis’ largest shareholder is Kia Motors with a 16.9% stake, followed by Hyundai Motor Group chairman Mong-Ku Chung with almost 7%.
The company manufactures chassis modules and systems and has played a pivotal role in Hyundai-Kia’s adoption of advanced technology such as autonomous driving, powertrain electrification, in vehicle information and connected systems.
Hyundai Mobis reported KRW7.4 trillion in cash in the early part of 2019 and planned to increase this by up to KRW2 trillion per year by 2022.
Of that, KRW3.5 trillion would be kept as operating capital.
Ko said his company planned to spend between KRW3 trillion and KRW5 trillion on expanding its global production capacity for electric powertrain parts by 2022, including fuel cells, while between KRW4 trillion and KRW5 trillion would be invested in the development and production of other core technology such as autonomous driving and connected technology.
It had also earmarked KRW150bn to invest in technology company startups.
The company is targeting revenues of KRW44 trillion by 2025, up from an estimated KRW36 trillion in 2019.