Hyundai To Create New U.S. Affiliate After $10.5-B Investment Pledge

Hyundai Motor Group announced Thursday the establishment of a new investment affiliate in the United States as part of its vow to invest $10.5 billion in the world's largest economy, according to Yonhap News Agency.

Photo Insert: Hyundai Motor Group Chair Euisun Chung, who met with Biden one-on-one in Seoul in May, vowed an additional $5 billion investment in the United States.

According to regulatory papers, the new affiliate, tentatively designated HMG Global, will be based in Delaware and funded by Hyundai's three main entities, Hyundai Motor Co., Kia Corp., and Hyundai Mobis Co.

"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 subsidiary Kia will invest a total of $578 million in the new American unit. Hyundai Motor and Hyundai Mobis, the auto parts affiliate, will also transfer to the new U.S. affiliate their controlling stakes in Boston Dynamics, a U.S. robotics business Hyundai purchased two years ago.

Hyundai Motor will control 49.5 percent of the new affiliate, while Kia will own 30.5 percent and Hyundai Mobis will own 20.5 percent.

Following regulatory permission, the new U.S. affiliate is slated to begin in August. The decision follows Hyundai's announcement in late May that it will invest $5.5 billion in Georgia to establish electric vehicle and battery cell factories.

The statement came while U.S. President Joe Biden was in South Korea for a meeting with President Yoon Suk-yeol.

Hyundai Motor Group Chair Euisun Chung, who met with Biden one-on-one in Seoul in May, vowed an additional $5 billion investment in the United States to push for future growth engines ranging from robotics and urban air mobility to self-driving technologies.

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