Seeking Partnership with Global IT Companies
Global auto component producer Mando Corp. will spin off its advanced driver assistance systems (ADAS) division, which is in charge of developing core technologies for future cars, in order to strengthen its research and development (R&D) capabilities.
The company announced on Jan. 14 that it will strengthen the competitiveness of the ADAS division based on the business unit (BU) system which it has adopted to make the company’s organization more product-centered.
Under the BU system, each of the four product units -- ADAS, break, steering and suspension – is independently managed by a BU head. The ADAS division includes radar, camera and domain control unit, which are the core of autonomous driving technologies.
The ADAS division also stands out in sales growth. The proportion of the division to total sales increased from 5 percent in 2016 to 6.4 percent in 2017. Its sales come mainly from Hyundai Motor Co. and Kia Motors Corp., but are expanding to global companies. Accordingly, Mando expects that the sales of the ADAS sector will surpass 2 trillion won (US$1.78 billion) in 2023.
The company successfully tested level 4 autonomous driving technologies in Pangyo, Gyeonggi Province, in December last year. Level 4 is fully automated driving that comes before level 5 or full automation where no driver is needed.
Mando also acquired the autonomous vehicle testing permit in the state of California in the United States last year. It is planning to enter a strategic partnership with global leading information technology (IT) firms this year. The company has decided to make an R&D investment mostly in sectors that will create profits in the future, including ADAS, integrated dynamic brake (IDB), e-Drive, and maintain the proportion of investment to sales at more than 5 percent.