Chairman Chung Euisun Focuses on 'Robot', Establishes New Value Chain for Hyundai Motor Group

Chairman Jeong Eui-seon Also Holds 20% Stake in Boston Dynamics
Hyundai Motor, Hyundai Mobis, and Hyundai Glovis Unite Around 'Robots'

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Group is making a full-scale entry into the robotics business by acquiring the U.S. robotics specialist company Boston Dynamics. Notably, this acquisition involves not only Hyundai Motor but also Hyundai Mobis and Hyundai Glovis, raising expectations for group-level synergies in logistics, transportation, and service businesses beyond future mobility.

On the 11th, Hyundai Motor Group announced that it had reached a final agreement to acquire a controlling stake in Boston Dynamics from the SoftBank Group. As a result, Hyundai Motor Group will hold 80% of Boston Dynamics, which is valued at approximately $1.1 billion. Within Hyundai Motor Group, Hyundai Motor, Hyundai Mobis, Hyundai Glovis, and Chairman Chung Eui-sun will jointly participate, with the final shareholding structure as follows: Hyundai Motor 30%, Hyundai Mobis 20%, Hyundai Glovis 10%, and Chairman Chung Eui-sun 20%.

Boston Dynamics started as a university venture in 1992 and was acquired by Google in 2013 and SoftBank Group in 2017. As a company specializing in intelligent robot development, it has competitiveness and develops walking robots such as Spot and Atlas, as well as logistics robots like Pick. Since 2016, it has showcased the bipedal walking Atlas, and last year demonstrated advanced movements such as backflips.

This acquisition agreement reflects the group's intention to nurture new businesses by establishing a robot-centered value chain at the group level. Hyundai Motor Group expects that synergies between Boston Dynamics' robotics capabilities and the group's manufacturing and logistics capabilities will enable it to take the lead in the robotics market.

Chairman Chung Eui-sun's First Large-Scale M&A Since Taking Office... "Full-Scale Entry into Robotics Business"

This acquisition is particularly significant as Hyundai Motor Group's first large-scale merger and acquisition (M&A) since Chairman Chung Eui-sun took office in October. Chairman Chung personally acquired a 20% stake in Boston Dynamics.

Under Chairman Chung's leadership, Hyundai Motor Group has accelerated its transformation into a smart mobility solutions company, focusing on the potential of the robotics market as part of this effort. Hyundai Motor Group forecasts that the global robotics market will grow at an average annual rate of 32% from this year through 2025, expanding to $177.2 billion. At a town hall meeting last October, Chairman Chung stated, "50% of Hyundai Motor Group's future business will be automobiles, 30% UAM (Urban Air Mobility), and 20% robotics."

Through this acquisition, Hyundai Motor Group expects to maximize synergy by combining Boston Dynamics' robot research systems, excellent development personnel, and know-how in robotics with the group's global business capabilities. Furthermore, it aims to secure a brand image as a leading advanced technology company.

In particular, by fully entering the robotics business, Chairman Chung aspires to achieve the goal he recently emphasized: "realizing the value of free and safe movement for humanity." Robots can be widely used not only for commercial purposes but also in public sectors such as security, safety, and healthcare-related public services.

In his inauguration message last October, Chairman Chung said, "Due to the COVID-19 pandemic, non-face-to-face trends and movement restrictions have rapidly changed daily life, accelerating the transition to a digital economy. We aim to realize humanity's dream of safe and free movement and peaceful life together, sharing the fruits with customers worldwide and becoming a beloved company."

Hyundai Motor-Hyundai Mobis-Hyundai Glovis Build New Robot-Centered Value Chain

Hyundai Motor Group is promoting the formation of a new group-level value chain in the robotics field through the acquisition of Boston Dynamics. Robotics technology is expected to create synergies not only in future mobility areas represented by autonomous and electrified vehicles but also in logistics, transportation, and service businesses.

First, leadership in all areas related to robotics technology is anticipated. At the end of last year, Hyundai Motor Group expanded its robotics team into the Robotics Lab, a direct organizational unit, to strengthen related capabilities. Combining this with Boston Dynamics' strengths in robot control technology is expected to enable significant technological advancements at the group level.

Hyundai Kia Motors Robotics Lab developed the 'Chair-type Wearable Robot CEX' and the 'Overhead Work Wearable Robot VEX' in 2018 for use in automobile manufacturing plants. After establishing mass production systems for CEX and VEX at the end of last year, it is reviewing expansion to domestic and overseas factories. Hyundai Motor Group expects that integrating customer-related big data and mobile application service-based data, built on its global network, with robotics technology will enable the development of customized robot services.

Hyundai Motor Group anticipates that early-stage robot adoption within the group will secure economies of scale and improve profitability. To this end, it plans to expand robot demand and serve as a test bed to verify robot system reliability by deploying robots in numerous Hyundai Mobis and Hyundai Glovis factories and logistics centers both domestically and internationally.

Once last-mile robot mobility is developed, it can be effectively utilized in Hyundai Mobis' core business area of AS parts supply. Hyundai Glovis will build a smart logistics system incorporating robots in logistics automation to enhance operational efficiency and service competitiveness.

In the long term, Hyundai Motor Group plans to pursue a comprehensive robotics solution business. It will seek business opportunities that integrate robot control, management, and maintenance in all fields where robots can be used, including industry, medical, delivery, personal services, and smart factories.