[News Article] Hyundai Motor speeds up strategic shift to software-defined mobility
Hyundai Motor speeds
up strategic shift to software-defined mobility
By Byun Hye-jin, The
Korea Herald - Hyundai Motor Group said Wednesday it has set up a new research
and development division in its push for software-defined vehicles by combining
several teams across the auto giant's affiliates. The Advanced Vehicle
Platform Division integrates three software development units -- its in-house
SDV division and two separate teams at the carmaker’s research centers. Other teams working
on the next-generation automotive platform and software that used to be under
the leadership of the carmaker’s chief technology officer will also join the
new division. The new division
will be headed by Song Chang-hyeon, who has doubled as the head of the former
SDV division and 42dot, Hyundai’s latest subsidiary specializing in mobility
software. Hyundai acquired
42dot, a startup founded by Song, for 427.6 billion won ($317.7 million) in
2022. 42dot was not part
of the recent reshuffle, but it plans to work closely with the software branch
as one team, according to a company official. As for hardware, the
existing division has been revamped to focus on commercial production and new
car launches. Yang Hee-won will head the research and development division Industry insiders
say the recent shake-up centering on drastic changes to software development
signals the carmaker’s commitment to accelerate the shift to SDVs. “Hyundai needed to
speed up the decision-making process and elevate operational efficiency overall
when it comes to software development,” said an industry source close to the
matter. The source added
there have been subtle pushbacks within the company on the latest reshuffle,
given that it has largely been driven by hardware and machinery people. “But given changing
tides among carmakers, employees would have to accept the irreversible paradigm
shift from hardware to software in future mobility.” The group’s
Executive Chair Chung Euisun is also keen on the software mobility business. In
recent occasions, including last week’s CES in Las Vegas, he expressed concerns
that the carmaker could fall behind rivals if it is not firmly ready for the
heated software race. Experts say the
recent reshuffle also reaffirms Chung’s bold leadership to name a top executive
outside the company like Song, who started his career in Naver. “Chung has always
recognized the limitations of in-house personnel, especially when it comes to
ushering in a profound business change,” said Kim Pil-su, a car engineering
professor at Daelim University. “For carmakers, right now, the pinnacle of
research and development is software. Those who fail to build algorithms
powered by artificial intelligence will run out of business.” Kim added Chung has
given more power to Song, a software expert, to lead the way toward a mobility
revolution -- far more drastic change than innovation. Source: https://www.koreaherald.com/view.php?ud=20240117000634
2024.01.19