South Korean automobile equipment manufacturer Mando signed a share purchase agreement with Germany-based Hella to acquire Mando-Hella Electronics (MHE). A joint venture between Mando and Hella, MHE is a company that manufactures and sells electronic auto components. Based in South Korea’s Incheon, MHE produces electronic parts such as radars, cameras, sensors, and integrated control systems for autonomous vehicles. Since MHE specializes in technologies for self-driving cars, Mando is aiming to expand its production and global reach.
“We have worked very successfully with Mando in South Korea over the last twelve years and have further strengthened our position in the very important South Korean market,” said Rolf Breidenbach, Hella’s chief executive. “We will now further push our direct business based on our global development and production network. In this context, we will also gradually expand our own activities in South Korea.”
Mando’s Plans for MHE
“The deal will take Mando’s autonomous driving technology to the next level,” said Cho Seong-hyeon, Mando’s president. “With the acquisition, we will improve competitiveness in prices and quality control through direct management of manufacturing while nimbly responding to the needs of the global market.”
Under the KRW 165-billion deal (USD$147 million), MHE will help Mando increase its production capacity for electric and autonomous vehicle components. During this year’s first quarter, Hella and Mando will finalize the purchase agreement.
With its manufacturing sites in India and China, Mando will utilize MHE’s capacities to boost sales and enter international markets. Through the acquisition of MHE, Mando can further support locally manufactured parts and save production costs. As for the outputs, Mando will develop advanced driver assistance systems and electronic control unit components, and branch-out product lines. In addition to market and product developments, Mando will collaborate with MHE’s R&D team in creating solutions for autonomous driving.
Mando at CES 2021
Aside from its MHE ventures, Mando will also manufacture the vehicle components for driving systems they showcased at CES. This January, Mando participated in the online event CES and introduced the pedal-assisted electric drive system, SPM Module. Mando also introduced the Steer-by-Wire (SbW), a technology enabling drivers to stow away the steering wheel when not in use. The SbW technology received the CES 2021 Innovation Award Honoree.
Check out other must-read articles from KoreaTechToday:
- Bitsensing Radar Sensor Startup Raises 6.95 Bln Won in Pre-Series A
- LG Innotek Successfully Develops High Security Digital Car Key
- LG, Qualcomm Develop Ultra-Fast 5G-Powered Connected Car Platform
- SoCar, RideFlux to Test Run Driverless Shuttle Service in Jeju Island
