Hyundai is launching a future strategy division to oversee mergers and acquisitions and startup investments. The future business division will work as a control tower to oversee expansion into various new areas. Hyundai recently underwent an organizational reshuffle before launching this new division.
Exploring and Cultivating New Businesses
One of the goals of the new division will be exploring new business ideas, including AI, EV infrastructure, robotics, autonomous driving, and urban air mobility. It will be led by Hyundai’s current VP and venture investment expert Jung Ho-geun. Before becoming Hyundai’s VP, Jung was in charge of overseeing startups at global financial firms, including Fidelity and Deutsche Bank.
Another unit is focused on planning throughout the Hyundai Motor Group with 15 teams focusing on sustainable management and carbon-neutral strategies among other services. The launch of the Future Strategy Division was ordered after Hyundai earmarked roughly $1 billion for investments and stake purchases through 2033.
During the next ten years, Hyundai also plans to push more money into its Mobility Game Changer strategy to invest in self-driving technology and software-driven vehicles. Overall, Hyundai has a spending plan of up to 54.5 trillion won for the next ten years.
Preparedness Instead of Speed
According to Hyundai’s chairman and CEO, the company’s keyword is now preparedness instead of speed. Chung Euisun went on to say that Hyundai must make bold investments and lead the shift to make quick and accurate decisions. Chung took over Hyundai Motor Group in late 2020 and has since made inroads with new technology like robotics and autonomous driving.
In 2021, the company snagged an 80% share in Boston Dynamics from Softbank Group. The acquisition cost $880 million. Boston Dynamics is most well-known for its dog-shaped robot Spot. In 2024, both Hyundai and Kia posted the most sales ever with plenty of movement in premium models and crossovers.
However, the company is still struggling to catch up with Tesla, which is the leader in global EV sales. Meanwhile, EV sales have slowed significantly in the last year or so, and Chinese rival automakers have cropped up with one of the biggest being BYD Co.
North and South American Operations
Hyundai has posted another first with Jose Munoz taking over as the first non-Korean CEO of the company. Munoz was previously the Global Chief Operating Officer and head of the North and South American operations division. Hyundai set a new all-time annual sales record in America with total sales up 4%. Some of its most popular models include the IONIQ 5, Tuscon HEV, Santa Fe HEV, and Palisade. Meanwhile, the used Hyundai Kona gets even more affordable with the latest model’s redesign.
2024 was the fourth year in a row for Hyundai setting an annual retail sales record in America. According to the CEO of Hyundai North America, the record-breaking sales were mostly driven by offering a wide variety of models and powertrains to meet consumer needs. Hyundai Motor America is confident that the momentum will continue into 2025 and beyond.
