hyundai: Hyundai to create new US affiliate after USD10.5 billion investment pledge
The new affiliate, tentatively named HMG Global, will be established in Delaware state in the US and funded by Hyundai's three flagship arms -- Hyundai Motor, Kia and Hyundai Mobis, according to regulatory filings posted by the companies.
"The establishment of the new affiliate will enable us to more quickly invest in companies with new technologies in the United States, home to many innovative companies, and we are expected to manage them efficiently," the group said.
Hyundai Motor and its smaller affiliate Kia will together inject a combined USD578 million in the new American unit, reports Yonhap news agency.
Hyundai Motor and Hyundai Mobis, the auto parts-making affiliate, will also transfer in kind their controlling shares in Boston Dynamics, a US robotics company Hyundai acquired two years ago, to the new US affiliate.
Hyundai Motor will thereby own 49.5% in the new affiliate, with Kia owning 30.5% and Hyundai Mobis' share at 20.5%.
The new US affiliate is expected to be launched around August following regulatory approval.
The move came as a follow-up to Hyundai's announcement in late May it will spend USD5.5 billion to build electric vehicle and battery cell plants in Georgia.
The announcement was made while US President Joe Biden was visiting South Korea for a summit with President Yoon Suk-yeol.
Hyundai Motor Group Chair Euisun Chung, who met one-on-one with Biden in Seoul in May, pledged an additional USD5 billion investment in the US market.
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