) accelerates the shift to electric cars, Hyundai Motor 005803.KS’s loyal suppliers have increasingly turned to “outsiders” for parts - but now the South Korean carmaker’s own supply company, Mobis, is plunging into the game.
The move is a direct response to companies such as Volkswagen and Tesla muscling in with suppliers with whom Hyundai had worked for decades. Hyundai Mobis, in which Hyundai Motor Group chairman Chung Mong-koo is the biggest individual shareholder, gets more than 90% of its revenue from the mothership.
Hyundai suppliers can leverage Hyundai’s longtime experience with developing eco-friendly cars, he said, which puts them ahead of European peers who have focused on diesel. Logistics affiliate Hyundai Glovis Co Ltd , which counts Euisun Chung as its biggest shareholder, has also expanded customers from Hyundai to Tesla and Volkswagen to transport vehicles across continents.Like many of Korea’s family-owned conglomerates, or chaebol, Hyundai Group is deeply invested in vertical integration, with affiliates making key parts and even steel. Family members, aides and others close to the company founded key suppliers.