EXCLUSIVE: Hyundai Transys to open seat R&D center in Detroit

Industry

Published: 14 Jun. 2024, 06:00 Updated: 14 Jun. 2024, 13:29

EXCLUSIVE: Hyundai Transys to open seat R&D center in Detroit

Hyundai Transys engineers inspect crash test dummies after a simulation of a car crash at the company's R&D Center in Dongtan, Gyeonggi. [HYUNDAI TRANSYS]

Hyundai Transys is considering building a research center for car seats in Detroit, Michigan — the heart of the U.S. automotive industry nicknamed "Motor City" — in a move to lure global automakers.

It comes as the company hopes to reduce its dependence on Hyundai Motor and Kia, the two local carmakers that make up 80 percent of Hyundai Transys' total sales. The auto parts maker is 41 percent owned by Hyundai Motor and specializes in seats and powertrains.

“Hyundai Transys is in the works to build a seat research center in Detroit, the city with the perfect location that houses the 'Big Three' U.S. carmakers,” an executive from the company told the Korea JoongAng Daily.

Detroit is best known as the hub of the U.S. automotive industry where the Big Three of General Motors, Ford, and Chrysler — now operating as Stellantis North America — have their headquarters and main manufacturing facilities.

Hyundai Transys engineers test the vibrations of car seats in extreme weather conditions at minus 30 degrees Celsius (minus 22 Fahrenheit) at the company's R&D Center in Dongtan, Gyeonggi. [HYUNDAI TRANSYS]

“Hyundai Transys strives to attract more big auto names as clients as we have become an exclusive seat supplier for two major U.S. EV startups, Rivian and Lucid,” the source added.

Hyundai Mobis, another auto parts maker 17 percent owned by Kia, also has a research and development (R&D) center in Detroit. It holds a tech event annually inviting global automakers to display and market their products.

A crash test dummy is being used in a simulation of a car crash at 80 kilometers per hour (50 miles per hour) at Hyundai Transys' Seat R&D Center in Dongtan, Gyeonggi. [HYUNDAI TRANSYS]

If constructed, it will be the auto parts maker’s second overseas R&D center after the one in India.

Hyundai Transys declined to officially confirm the move, but added that it is “reviewing the need to establish an R&D center in North America.”

The car seat sector is a mainstay business generating higher profit margins in Hyundai Transys’ portfolio, accounting for 80 percent of its annual profit. The company generated 117 billion won ($86 million) in operating profit last year, 93 billion won of which came from the seat business.

Its revenue rose 15 percent to 11.7 trillion won last year.

Transys also has a seat research center in Hwaseong, Gyeonggi, that employs around 500 engineers. First opened in 2007, the center conducts over 180 different tests on factors such as durability and noise to develop the optimal car seat for maximum safety and comfort.

Its latest focus is developing seats for EVs and future cars like self-driving vehicles and urban air mobility, known as flying cars. Transys in 2019 inked a seat supply deal with California-based Rivian worth up to 1 trillion won. It also supplies seats to Lucid Motors.

Hyundai Transys has manufacturing facilities in a total of 11 countries globally including Korea, the United States, Germany, Mexico and Brazil.

BY SARAH CHEA [chea.sarah@joongang.co.kr]