Hyundai Mobis shares drop after report of separating modules, key parts businesses

Hyundai Mobis

16/08/2022 01:50

** South Korean auto-parts maker Hyundai Mobis'  012330.KS 
shares fall as much as 4.6% to a three-week low
    ** Co, an affiliate of Hyundai Motor  005380.KS , plans to
separate its modules and key parts businesses into new units,
South Korean newspaper Korea Economic Daily reported late on
Friday https://bit.ly/3dmyr3c
    ** A spokesperson for Hyundai Mobis could not be immediately
reached when contacted by Reuters
    ** The move could increase labour costs as the new units
take over work that had been subcontracted out, but the company
sees it as increasing production efficiency by reducing risks of
strikes and complaints by subcontracted workers, said Lee
Sang-hyun, an analyst at IBK Securities 
    ** The move could also help with potential future
restructuring of Hyundai Motor Group's governance structure, Lee
added 
    ** The broader KOSPI market  .KS11  was trading up 0.4% as
of 0038 GMT


 (Reporting by Joyce Lee)
 ((joyce.lee@tr.com;))