The potential deal with Apple was stopped As we discussed about the potential deal between Apple and Kia in the other article, there were also rumors about a deal between […]
The potential deal with Apple was stopped
As we discussed about the potential deal between Apple and Kia in the other article, there were also rumors about a deal between the American IT giant and Hyundai Motor Company. However, it seems that the negotiation among them was halted. Even though its collaboration with the most valuable company in the world was failed, Hyundai’s vision is not changed and may take more bold actions to realize its ambition.
Who is Hyundai?
Hyundai Motor Company is a South Korean multinational automotive manufacturer and its head office is located in Seoul. Hyundai Motor Company was founded in 1967, and the company also has 32.8 percent stake of other Korean automotive maker Kia Motors. Hyundai Motor Company’s presence in South Korea is huge and it sold 742 thousands units in 2019, in fact. Adding to this number, the South Korean automotive giant sold 3,684 thousands around the world (except for South Korea) units in 2019. Thanks to these numbers, sales revenue and profit of the year in 2019 were 105,746 billion KRW and 3,186 billion KRW, respectively.
According to Hyundai’s brand page, its new vision is explained. There are basically two elements: To provide freedom of movement to everyone and to play a pivotal role in global society’s transition to clean energy. The important question here is how Hyundai achieve this vision. As for the latter part (to play a pivotal role in global society’s transition to clean energy), the key success factor is hydrogen energy and the company tries to make it an economically viable energy source. In relation to the former part (to provide freedom of movement to everyone), Hyundai takes three initiatives.
- First, to invest in mobility services,
- Second, to build close relationship with leading mobility service providers
- Third, to expand their role beyond the automotive transportation sector.
As far as we take three initiatives into consideration, the potential deal with Apple made sense more. Even though it was failed, we can see another action from Hyundai’s recent activities. Acquiring Boston Dynamics in 2020 is one of them.
Who is Boston Dynamics?
Boston Dynamics is an American engineering and robotics design company and it was founded in 1992. The company is actually a spin-off from the Massachusetts Institute of Technology, which is one of prestigious universities around the world. Its head office is located in Waltham, Massachusetts and Hyundai Motor Company acquired it in December 2020. Boston Dynamics is well known for the development of dynamic highly-mobile robots such as BigDog, Spot, Atlas, and Handle.
According to Boston Dynamics’ homepage, its excellence comes from the principles of dynamic control and balance with sophisticated mechanical designs, cutting-edge electronics, and next-generation software. As a result, the company can manufacture high-performance robots equipped with perception, navigation, and intelligence.
Hardware can be a competitive advantage
As we see the same article, Apple’s earning power is exponential, but it is difficult for the US technology giant to complete its secret project “Titan” by itself. That is why potential rumor about Apple Car Project has been surrounding since the end of 2020. This fact means that manufacturing power, in other words, hardware itself can be a competitive advantage. In addition to this, Hyundai tries to expand its capabilities in the automotive sector through acquisition of Boston Robotics. Thanks to this, Hyundai is able to make use of cutting-edge technology and next-generation software. In the end, the South Korean automotive manufacturer might be the company that is excellent in both hardware and software.