[EuraCarCar] Hyundai Mobis Sheds Lamp and Bumper Businesses, Embraces Robotics

Divestment of Lamp and Bumper Businesses to Fund Future Industry Investments

Full-Scale Mass Production of Atlas Humanoid Robot Components Begins

Hyundai Mobis is transforming into a robotics company. Known as a leader in the automotive exterior parts industry, Hyundai Mobis has begun the process of overhauling its business structure by divesting its bumper and lamp divisions. The company plans to lead the future paradigm of the automotive industry through this restructuring, even if it means a reduction in immediate sales.

In just the first quarter of this year, Hyundai Mobis has moved to divest four business units and assets.

To begin, in January of this year, the company selected French auto parts maker OPmobility as the preferred bidder and began the process of selling its lamp business unit. The deal includes major overseas production bases and sales rights in North America, China, and Europe, and is estimated to be worth several hundred billion won.

Together with the lamp business unit, the bumper business unit—which played a key role in the early growth of Hyundai Mobis—has also been put up for sale. The sale includes all overseas manufacturing facilities and sales rights in North America, China, and Europe. Hyundai Mobis had already ceased bumper production in Korea and has been manufacturing bumpers exclusively overseas.

In addition, Hyundai Mobis has started to divest assets that have become less efficient. The company is currently in negotiations with logistics company Daeho Logistics regarding the sale of its Gyeongju Logistics Center. With the opening of the new Yeongnam Logistics Center last year, the utility of the Gyeongju facility declined, prompting the company to liquidate the asset.

Hyundai Mobis is also in discussions to sell its battery system (BSA) manufacturing facility in Ohio, USA, to its client Stellantis. Although the scale of the sale has not yet been finalized, as of 2024, the assets of the subsidiary are valued at approximately 41.1 billion won. This move is also seen as part of the company’s efforts to improve operational efficiency.

The capital raised by Hyundai Mobis through the divestment of its traditional exterior parts businesses and inefficient assets will be invested in SDV (software-defined vehicles), automotive semiconductors, and robotics. Among these, the company is particularly focused on expanding its robotics business, with a specific goal of supporting the next-generation humanoid robot "Atlas" developed by Boston Dynamics, Hyundai Motor Group’s U.S.-based robotics subsidiary.

Since 2021, Hyundai Mobis has included "robot and robot parts manufacturing and sales" in its articles of incorporation and is now solidifying its related business strategies. The company is taking concrete steps to establish this business, which it has been preparing for several years, as a new growth engine.

With Hyundai Motor Group announcing plans to build a robotics production base in North America capable of manufacturing around 30,000 robots annually, Hyundai Mobis is expected to supply key robotics components to meet the group's internal demand. The company has already confirmed the mass production of actuators, which are core components for Atlas.

In addition, Hyundai Mobis is expected to supply several other key components, such as grippers (robotic hands). Boston Dynamics has been concerned about the potential for robotics technology leaks if component production is outsourced to non-affiliated companies within the Hyundai Motor Group. As a result, the default policy is to expand collaboration with Hyundai Mobis.

On March 17, at the 49th Annual General Meeting of Shareholders held at GS Tower in Gangnam-gu, Seoul, Hyundai Mobis President Lee Gyuseok told reporters, "In addition to actuators, we are prioritizing the supply of grippers, which are most technologically similar. Rather than handling batteries, perception modules, or control modules, we believe it is better to focus on actuators and grippers."

Furthermore, Hyundai Mobis plans to accelerate the expansion of its robotics business by establishing a robotics parts manufacturing plant in the United States. Hyundai Motor Group has repeatedly mentioned the need for a U.S.-based robotics parts production base, and Hyundai Mobis is expected to take on this role. Although specific details have not been finalized, the main purpose of the plant will be to supply parts for the mass production of Atlas. This marks a turning point for Hyundai Mobis as it evolves from an auto parts supplier into a full-fledged robotics company.