April 20, 2024

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[THE INVESTOR] Hyundai Motor on April 4 denied rumors that it’s trying to ditch Harman International, a wholly-owned subsidiary of Samsung Electronics, to elbow the tech giant out of the race in the automotive segment.

“The recent replacement of Harman International’s audio system in some of our newer models has nothing to do with Samsung,” a Hyundai spokesperson told The Investor, stressing that the switch was part of a long-term plan to diversify car infotainment systems.

Among the seven new Hyundai models launched so far this year, two are equipped with Harman systems; the rest feature products of US firm Krell Industries.

Hyundai has actually been working with Harman long before Samsung acquired the US-based audio system firm in 2016. For most of its vehicles, the Harman system had been a basic option.

The carmaker, however, has recently started offering Krell systems in its more popular vehicle models, including the latest version of sport utility vehicle Santa Fe and Nexo, Hyundai’s first hydroelectric vehicle. The K5 and K9 sedan series and SUV Carnival, manufactured by Hyundai’s affiliate Kia, also come fitted with a Krell audio system, replacing the Harman products installed in their preceding models.

Following the changes, there were speculations that Hyundai is trying to wean itself off the US-based audio system maker following Samsung’s acquisition.

“Ultimately, they both want to dominate the autonomous vehicle segment, so competition at some level is inevitable,” said one industry observer, declining to be identified. “At the same time, there is also much room for them to work together.”

The two conglomerates hinted at collaboration at the CES electronics trade show held earlier this year in Las Vegas.

“Hyundai and Samsung will announce a joint project within six months,” Chi Young-cho, a vice president of Hyundai Motor who used to work at Samsung for a decade, told reporters at the event. He did not specify, but it is said the project is likely to involve research and development for autonomous vehicles.

By Kim Young-won (wone0102@heraldcorp.com)