This move will allow HEI to focus on its core business, while enabling the Automotive Electronics Division to function as an independent subsidiary in order to raise its productivity to an even higher level. The independent subsidiary will be named HYUNDAI AUTONET CO., LTD. Young Hwan Kim, president and chief executive officer of HEI, is expected to oversee HYUNDAI AUTONET CO., LTD. As Hyundai’s Automotive Electronics Division, this entity has developed and manufactured automotive navigational systems, automotive audio and audio/video systems, and a variety of censors for automobiles. The Division’s revenue for 1999 was approximately 320 billion won, or US $290 million. “Hyundai has planned the spin-off of its Automotive Electronics Division in response to automotive industry trends demanding more information for drivers, enhanced safety features, and superior quality,” said Young Hwan Kim, president and chief executive officer of HEI. “Our business strategy includes plans to integrate the current Automotive Audio/Video and Automotive Navigation Systems business units into one group under HYUNDAI AUTONET CO., LTD. This restructuring will help the subsidiary improve its automotive related sensors and other electronic systems to state-of-the-art levels, thereby furthering HEI’s objective of developing HYUNDAI AUTONET CO., LTD. into a world-class electronics manufacturer in the automotive industry,” Kim added. In addition, an investment of 130 billion won (approximately US $118 million) has been earmarked for HYUNDAI AUTONET CO., LTD. for Research & Development through the year 2002. This investment will position the subsidiary to move ahead of its competition through technology innovation, production enhancement, streamlining optimization, and unsurpassed quality.
– Hyundai Electronics Industries, Ltd. (HEI) today announced plans to spin off its Automotive Electronics Division as an independent subsidiary of HEI.
