Hyundai Mobis’ integrated front face module (File photo, courtesy of Hyundai Mobis)
Hyundai Mobis Co., the world’s sixth-largest auto parts maker, said on Friday it merged its electrification and module divisions to streamline its business structure as the global electric vehicle industry continued to struggle against weak demand.
The leading South Korean automaker Hyundai Motor Group’s unit reorganized the current five divisions – electrification, module, chassis safety, automotive electronics and service part departments – to electrification and module, chassis safety, lamp, automotive electronics and service component arms effective from July 1, according to the company.
Hyundai Mobis said it aims to support the long-term growth in the electrification business by utilizing experts at the module division, which has been stabilized.
The company, known as Mobis in overseas markets, separated the lamp business from the chassis safety unit to create a new division, given the sustained growth in the global automotive exterior lighting industry.
The market was forecast to surge 70% to $67.3 billion by 2030 from the estimated $39.6 this year, according to market research firm Fortune Business Insights Pvt. Ltd.
SIMPLIFIES R&D ORGANIZATION
Hyundai Mobis simplified the organization of its research and development division into the offices and teams from the current labs, sectors and cells to improve the department’s business and organizational efficiency.
“The division is expected to deal with changes more quickly as its structure was simplified,” said a company official.
The supplier to Volkswagen AG reorganized the business support divisions into two departments – the sales unit and the total solution unit handling contractors – from the existing seven parts such as procurements, quality and production development.
The move is to integrate functions of purchasing, development and new car quality scattered in different organizations, the official said.
By Jin-Won Kim
jin1@hankyung.com
Jongwoo Cheon edited this article.
