Hyundai Mobis to Launch Production Specialized Subsidiary Next Month

Module and Component Manufacturing Affiliate Company Name Confirmed

[Asia Economy Reporter Choi Dae-yeol] Hyundai Mobis announced on the 7th that it has finalized the name of its integrated module production subsidiary as Motras, and the parts production subsidiary as Unitus.

Motras is a combination of the English words Module and Transform, representing change and innovation. The company explained that it embodies the brand value of continuously evolving through proprietary technology. Unitus is a compound word of Unit, referring to parts technology, and Tous, meaning integration in French.

Earlier, Hyundai Mobis decided to create separate integrated subsidiaries responsible for production by module and parts, its main business areas, to strengthen mid- to long-term business competitiveness, and has been working on this. Previously, factories were operated in the form of multiple small-scale specialized production companies, but the intention is to establish new integrated subsidiaries for each and operate them efficiently to secure competitiveness. It is also expected to stabilize labor-management relations by hiring employees who previously worked at specialized production companies as regular employees of Hyundai Motor Group affiliates.

On the 5th, an extraordinary board meeting was held and a cash investment of 70 billion KRW was decided for the integrated production subsidiaries. Hyundai Mobis will own all shares of the subsidiaries. An in-kind capital contribution is scheduled for the first half of next year. Hyundai Mobis plans to apply for corporate registration on the 11th and expects the subsidiaries to launch in early next month.

The company stated, "The specialized production subsidiaries are expected to achieve sales of around 500 to 600 billion KRW each next year," adding, "We plan to gradually increase sales performance through production efficiency and responsible management."