Mando Proposed Business Reorganization

Mando, a subsidiary of Hella Group, has newly announced its vision to achieve 9 trillion KRW in revenue by 2025 through advancing into two core businesses, ‘EV Solutions (electrified chassis products and with new xEV related businesses)’ and ‘Autonomous Driving (ADAS & mobility solutions)’. The key strategies are 1) Existing Co. (Mando) will grow as a highly-focused EV solutions company through chassis (brake, steering, suspension) electrification, and 2) New Co. (MMS) will split-off from Mando and position as a ‘specialized autonomous driving & mobility company’. 

Mando’s Board of Directors approved the company’s plan to split-off its ‘Autonomous Driving (ADAS)’ business. The split-off plan is expected to be presented at the shareholders’ meeting to be held in July 2021, and the split-off transaction is to be completed on September 1st 2021, following regulatory requirements. Existing Co., the parent company of the New Co., will maintain its managerial control over the New Co. to create synergy between the two entities and will strengthen its position as an ‘integrated chassis system solutions leader’. Moreover, it plans to expedite the growth of the New Co.’s autonomous driving businesses through timely financing structure.

“MMS (Mando Mobility Solutions)-tentative”, the New Co., will emerge as a specialized autonomous driving solutions provider within fields of autonomous vehicles parts, autonomous robots, and mobility services. To create business synergy for autonomous driving, MHE (MANDO-HELLA Electronics) will become a wholly owned subsidiary of MMS. Also, revenue and profits of MSS and MHE will be fully reflected in Existing Co.’s financials. MMS and MHE are aiming to achieve 2 trillion KRW in revenue by 2025′, which is an increase of 800 billion KRW from that of the 2021 business plan.