Hyundai Motor Group expands supply chain through partnerships

[Courtesy of Hyundai Motor Group]

South Korea’s top auto conglomerate Hyundai Motor Group is gaining attention from global electronic devices companies as it expands partnerships to expand its supply chain.

It is also actively seeking collaboration with Samsung Electronics Co. and LG Electronics Inc. in diverse areas such as battery and vehicle processors.

According to multiple industry sources, Hyundai Motor Group is ramping up efforts to start collaborating with Samsung and LG, with both of which the automaker has had few interactions for decades.

In the 1990s, Samsung Group was a rival to Hyundai Motor Group before the 1997 financial crisis hit the country.

Though Samsung Group withdrew from its automaking business in the wake of the crisis, Hyundai Motor Group remained wary of its old rival, given the chance of its return to the market. However, Samsung Group’s focus on electronics and other tech devices has led to closer interactions with the automaker.

In-car infotainment has been at the center of the cooperation between the two. Hyundai Motor Group will start using in-car infotainment processors from Samsung Electronics with cars equipped with the processors expected to hit the market next year.

Samsung Display Co. and Samsung Electronics are ramping up their supply of components to Hyundai Motor Group.

The collaboration between Hyundai Motor Group and LG Group is also intensifying.

LG Magna e-Powertrain Co., a joint venture between LG Electronics Inc. and Magna International Inc., has begun supplying motor components for EV9, a large sport utility vehicle manufactured by Kia Corp.

Other LG subsidiaries, such as LG Innotek Co. and LG Display Co., are also building strong ties with Hyundai Motor Group.