April 25, 2024

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[THE INVESTOR] Hyundai Motor's IT chief downplayed  Samsung Electronics' recent US$8 billion acquisition of Harman International, the US audio giant that is betting big on connected car solutions, saying the high-profile tie-up does not pose any immediate threat.

“If Samsung hopes to become a top-tier supplier, it would not try to compete head-on with carmakers,” said Hwang Seung-ho, Hyundai’s executive vice president who oversees telematics business, in a recent interview with The Herald Business, a sister vernacular business daily of The Investor.

“There are still some concerns about Samsung building electric cars but it seems less likely now.”

 

Genesis G70 is expected to feature Hyundai's first cloud-based voice recognition system.

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The comments come amid speculations that the Korean tech giant could consider building cars on its own any time soon, posing a direct threat to carmakers, especially its crosstown rival Hyundai.

But Samsung has denied any interest in making cars, saying its focus is on connected car solutions that would play a key role in the upcoming era of automotive driving.

Harman CEO Dinesh Paliwal also met Hyundai’s top brass last week during his visit to Seoul possibly to renew the company’s commitment to their partnership even under the new ownership.

“With the latest deal, Harman has become a more attractive supplier that embraces Samsung’s chip, display and other electronic solutions know-how. We hope for a closer partnership in the future,” said Hwang, a former Samsung executive.

Prior to joining Hyundai in 2014, he worked for Samsung’s logic chip business unit between 2006 and 2013. He resigned as vice president heading the company’s modem and connectivity unit.

According to Hwang, Hyundai is working on a new cloud-based voice recognition system that is expected to be equipped first in an upcoming brand-new luxury compact sedan under the Genesis brand, tentatively named Genesis G70, next year.

Compared to early voice systems using a computer chip installed in the vehicle, cloud connectivity will drastically increase the amount of data that can be analyzed for traffic information and navigation services.

By Lee Ji-yoon (jylee@heraldcorp.com)