Hyundai motors Softbank: We have all heard about the robot-making company, Boston Dynamics, which came into the limelight with its dog-like robot named Spot.
Recently, Hyundai Motor Group and its chairman have agreed to buy a controlling stake in Boston Dynamics from SoftBank Group Corp in a deal that values the U.S.-based robot maker at $1.1 billion.
Hyundai, a South Korean automaker is planning to upgrade its car manufacturing plant, and planning to automate the majority of its processes.
Apart from just being the manufacturing utility, the purchase has various dynamics and could possibly help evolve Hyundai get footholds in other sectors like providing services.
On Friday, the Automobile giant expressed their intention of expanding into automation in their vehicle factories, designing autonomous cars, drones, and Robots as they plan on diversifying their business strategy.
This shift has been visible since the company got its newly promoted chairman Euisun Chung. Hyundai motors Softbank Hyundai is determined to reduce its reliance on traditional car manufacturing.
According to the new strategy, They are planning to diversify their business into Robotics, car-making, and urban transport. Each would account for 20%, 50%, and 30% respectively.
The new deal will give the majority stake to the Hyundai Motor Group, i.e, they will have 80% of the ownership of Boston Dynamics.
Chung, the newly appointed showed an interest in the deal and will own a 20% stake in Boston Dynamics, while Hyundai Motor and its affiliates Hyundai Mobis and Hyundai Glovis will have 60%of the shares combined.
The deal was made between Hyundai and the Giant Enterprise SoftBank, who earlier bought the Boston Dynamics from Google in 2017.
Boston Dynamics came into emergence from Massachusetts
Institute of Technology in 1992 and got a lot of media attention. Through this attention, Google bought the company in 2012
Softbank Group Chief Executive Masayoshi Son has said and is confident that this deal would act as a catalyst in fast-forwarding the robot commercialization
Last year, Boston Dynamics reported a total loss of $103 million which is 60% higher than the year before, making it a liability on SoftBank
Boston Dynamics’ clients include various clients. One of their clients was Ford Motor Co, To which they leased two Spot Robots last year.
Last year, Ford Motor also said it was partnering with robot maker Agility Robotics as they plan to develop self-driving delivery vans that will drop packages at the doorsteps of people’s homes.
This deal can also be seen as the center to the partnership of Ford Motor co. with the robot maker AgilityRobotics, which intern happened under Ford’s grand plan to make a Self-driving delivery vehicle