Mando to Spin Off Autonomous Driving Business... "Achieving 9 Trillion KRW in Sales by 2025"
[Asia Economy Reporter Changhwan Lee] Mando, an affiliate of Halla Group, will spin off its autonomous driving business through a physical division. By specializing in its two main pillars, EV solutions (chassis electrification and new EV businesses) and autonomous driving, the company plans to achieve sales of 9 trillion KRW by 2025.
Mando announced on the 9th that its board of directors has resolved the physical division plan for the autonomous driving business. The division plan will be submitted to the shareholders' meeting next month, with the division date set for September 1.
Mando will become the parent company (100%) of the newly established corporation.
The newly planned corporation, tentatively named "Mando Mobility Solutions (MMS)," will emerge as a specialized autonomous driving company focusing on autonomous vehicle parts, autonomous driving robots, and mobility services.
Mando Hella Electronics (MHE) will be incorporated as a 100% subsidiary of MMS, considering synergies in the autonomous driving business.
The sales and profits of MMS and MHE will be fully reflected (100%) in Mando Co., Ltd., with a target of achieving 2 trillion KRW in sales by 2025.
The continuing corporation, Mando, will develop into an EV solutions specialist based on its business experience with global leading electric vehicle companies and the advancement of software solutions. Mando's target sales for 2025 are 7.4 trillion KRW.
The total consolidated sales of Mando, including MMS, for 2025 (excluding inter-affiliate overlapping sales) aim to reach 9 trillion KRW, an increase of about 3 trillion KRW compared to this year's business plan of 6.1 trillion KRW.
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Chosunghyun, Mando's CEO, said, "Specialization of core businesses is a necessary factor to overcome the hurdles of a rapidly changing market," adding, "We will strive to maximize shareholder value by having both Mando and MMS recognized as specialized companies."
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