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Hyundai Motor to invest $87 bn in future mobility tech by 2025 (koreatechtoday.com)
46 points by jamesjung1 19 days ago | hide | past | web | favorite | 8 comments

Every time I see this the amounts get higher and the times get shorter. This was the first:


Which reads as $34.6 billion in five years time or, $50 billion over the next decade.

I'd take all these figures with a healthy grain of salt, but Hyundai is getting excellent PR mileage out of these announcements.

"The company will spend 20 trillion won ($17.4 billion) a year"

Hyundai is big, but that is insane amount of money. They're going to have to finance a lot of it since their profit is "only" $5 billion per year.

Good on them for such bold decision.

You're right .. this is an insane amount of money. Their total cash on hand at the end of 2018 looks like it was 26,800,814,000 [1]. And yet they spent a record $10 billion on a piece of land (3x the appraisal value) ~5 years ago. [2]



They can also partially reallocate their current development spending toward that goal. They are also most probably already spending significant amounts in this area.

How does that compare to others in this space? That's nearly $1.5 B per month. How do you ramp up and spend at that level without a noticeable amount/percentage being pure waste?

Yes, it's bold. But perhaps too much so?

> How does that compare to others in this space?

It is quite significant. Ford is the biggest one I can think of with about a $1b each for Argo AI and Rivian. Toyota AI Ventures is only $100m.

Capitalism is (i think) about efficient allocation of resources (ie free price movement in markets are better than governments). But BigCos are so Big they are just as bad as governments - take the trophy property bid below - I mean you could parcel out that 10 billion to every HN member and I guarantee higher returns than a Seoul Real Estate bid.

So while I am sure Hyundai will spend this 87bn on car related stuff and multiplier effects etc, I just happen to think that since the money exists anyway as they are borrowing it, perhaps it should all be turned into VC funds

I mean look at SoftBank. if you took 100bn and handed it out to a million start ups globally what could you expect. Another WeWork? or better?

So - the million start up fund? Whose in?

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