Hyundai Motor reportedly has bought the majority stake of Boston Dynamics. The news of acquisition lit up expectations on both companies’ upcoming projects.
Hyundai awaits for boards approval on the acquisition of Boston Dynamics
Reuters reported that Hyundai Motor Group and its chairman will own 80% stake worth for around $800 million in Boston Dynamics. While Hyundai Motor and its affiliates, Hyundai Mobis and Hyundai Glovis, will possess 60% stake together, Euisun Chung will hold the remaining 20% stake. The formal announcement of the deal is expected to be revealed by Friday, as the companies are still waiting for approvals from boards of the three units. On the other hand, both companies remain silent upon the matters.
The acquisition news might not come as a surprise to some. Previously, Chung has pledged to rely less on traditional car manufacture. The newly-promoted chairman mentioned his ambition to aim for robotics, which will take over 20% of the company’s future business. Accordingly, the company will befit future business for car-making to 50% and urban air mobility to 30%.
Quoted from Reuters, Hi Investment & Securities’ analyst, Koh Tae-bong, said that “the acquisition would help Hyundai offer a seamless approach to goods delivery with the help of delivery robots and driverless vehicles such as cars and planes.”
Scrapped up old projects, what is in Hyundai’s future?
Though Hyundai is comparably late to the innovation race, the South Korean automotive manufacturer has shown its interest in the competition. Earlier this year, Hyundai partnered up with Uber for its electric air taxis project. Unfortunately, Hyundai had to sell the project to Joby aviation due to the loss it caused.
With Hyundai acquiring Boston Dynamics, analysts expect an expansion in Hyundai’s car factories. Autonomous self-driving cars, drones, and delivery robots might not be impossible for Hyundai in the future.
Read also: Xiaomi’s Ambition to Beat Apple and Huawei in Sales
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