Hyundai Motor Group (HMG) announced plans to establish a new financial subsidiary in the US to manage the company’s investment activity in the country.
This followed a recent pledge by the automaker to invest US$10.5bn in the world’s largest economy. In May it announced plans to invest US$5.5bn in an electric vehicle and battery plant in Georgia.
The new company, tentatively named HMG Global, was expected to be established in Delaware by August 2022 and would be funded by the group’s three main operating companies – Hyundai Motor, Kia and auto components manufacturer Hyundai Mobis.
Both Hyundai Motor and Kia would inject a combined US$578m into the new investment company while Hyundai Mobis would transfer its stake in US artificial intelligence (AI) company Boston Dynamics.
Hyundai Motor would own 49.5% in the new company, Kia 30.5% and Hyundai Mobis the remaining 20%.
HMG said in a statement: “the establishment of the new affiliate will enable us to more quickly invest in companies with new technologies in the US, home to many innovative companies, and we are expected to manage them efficiently”.