A Win-win Deal for Hyundai Mobis and Krell
Hyundai Mobis is working with Krell Industries, one of America's largest manufacturers of high-end audio systems, for joint development of car audio systems.
The partnership is a win-win deal as Krell wanted to broaden its business into the car audio market, while Hyundai Mobis needed a global brand name for its car audio products.
Hyundai Mobis concluded a contract with Krell two years ago to jointly develop car audio systems and use the Krell brand name for the developed products.
Hyundai Mobis has its own audio technology, but its products are no match for those from global brands such as Harman in terms of technology and recognition. As the audio market targets a big pool of manias, the entry barrier is high.
Krell is one of the strongest American home audio companies, and it entered the vehicle audio market in 2013 for the first time by teaming up with Japan’s Honda. It expanded its business to Kia Motors in 2016 and then to Hyundai Motor.