Mobis on the Move
From Korean Herald Special Report on Mobis
Aiming to become one of the world's top 10 automotive parts makers, Hyundai Mobis Co. is increasing its sales of original equipment manufacturing parts, aftermarket parts and accessories overseas.
Mobis' worldwide network of distribution centers supply components to global vehicle manufacturers including the Big 3 U.S. carmakers - General Motors Corp., Ford Motor Co. and DaimlerChrysler AG - by using a "just in time" delivery system.
In 2010, the nation's No. 1 automotive parts provider plans to earn 5 trillion won in exports and 10 trillion won in domestic sales.
"Mobis seeks to achieve this goal through expanding its global supply network and production facilities," said Jang Yoon-kyung, director of the firm's public relations.
The company's Overseas Parts Sales Division introduces its products to carmakers, parts makers and parts distributors around the world by participating in automotive parts exhibitions and technical presentations every year.
"We began an overseas market research in November last year. Eight teams covering different regions such as North America, Europe, Commonwealth of Independent States, China, South America and Asia Pacific will map out individual strategies for those markets," said Jang.
Mobis saw worldwide sales of $1.1 billion last year and aims at $1.28 billion this year. Mobis sells 586,542 different aftermarket components in 171 countries through 421 agents and 7,599 dealers.
Hyundai Mobis operates six logistics bases in North America, Europe, Middle East, China and Asia Pacific.
The company plans to set up seven more this year and gradually increase the number to 21.
"When we acquired aftermarket parts sales businesses from Hyundai Motor in February 2000 and from Kia Motors in December 2000, our goal was to reorganize them to provide improved service as soon as possible," said Chung Nam-ki, Mobis senior executive vice president of parts sales.
The company immediately formed a task force team to set up a long-term strategy for efficient product supply, Chung said.
Based on the plan to set up 21 logistics bases, the company began construction of logistics centers in Dubai, Shanghai and Miami.
In August 2001, Mobis took over what is now called Mobis Parts Europe (MPE) in Belgium from Hyundai Motor. The European subsidiary grew into a logistics base storing and supplying diverse automotive components.
Mobis built a giant logistics center with floor space of 15,000 square meters on a site spreading 92,400 square meters in Shanghai in July 2002. In October that year, another logistics base with double the floor space was set up in Dubai, United Arab Emirates.
The Dubai logistics center allowed to reduce the time took in supplying the parts to local distributors from 40 days to 10 days.
In 2002, Hyundai Mobis established an online network that allows its agents to exchange information and purchase parts online. The online system named 'Mobis Global Network' enabled the company to start delivery within a day after it receives orders.
Mobis also sought rationalization of logistics for exports by integrating Kia's three bases across the country into a large-scale center in Asan, South Chungcheong Province, in March 2003. Exports of genuine parts for Hyundai cars are handled in the logistics base in Ulsan, 416 kilometers southeast of Seoul. The integration brought 10 percent cut in logistics costs.
In January 2003, Mobis built a second European subsidiary in Bremen, Germany and in June 2004, it set up a parts center in Miami, Florida. The company opened a joint venture in Beijing last September, and a subsidiary in Moscow in December.
Overseas module plants
As Hyundai Mobis transformed itself into an automotive parts firm, it began adopting the module concept into the domestic industry.
Instead of fitting individual parts on to the car's body, joining modules or packaged functional assemblies of components shortens the production process, reduces the number and weight of parts, thus saving cost.
"As Hyundai and Kia's overseas sales increased, their production plants went global. Module plants followed because quick supply of modules leads to higher competence of auto assemblers," said Chung Hyung-mo, senior executive vice president of Mobis module business.
The first Mobis factory overseas opened in Jiangsu, China in December 2002. Its role was to produce high-quality chassis and cockpit modules for cars made by Dongfeng Yueda Kia, a joint venture of Kia and the two Chinese automakers. The factory's initial production capacity was 50,000 modules per year. It now makes 130,000 units annually.
In March 2003, Mobis broke ground for its Alabama plant, scheduled to produce 300,000 chassis and cockpit modules annually from this year. The plant is only nine miles away from Hyundai Motor's assembly plant in the southern state.
Hyundai Mobis completed another factory in Beijing in November 2003 to supply modules to Beijing Hyundai Motor Co. A transmissions plant was also built in the Chinese capital last April to meet the growing demand for Hyundai and Kia cars in the country.
In efforts to double the current global production capacity of 500,000 units by 2008, Mobis plans to set up a second Jiangsu plant within a year or two, increasing the annual production capacity to 400,000 units. The company will also extend its Beijing production lines to manufacture 600,000 modules per year, and build a new bumper plant in the outskirts of the city.
Hyundai Mobis announced earlier this month that it is scheduled to complete module plants with annual production capacity of 300,000 units in Slovakia by 2006 and in India by 2007.
In August last year, Hyundai Mobis agreed to supply its rolling chassis modules to the U.S. operation of DaimlerChrysler AG under a contract valued at 180 billion won a year.
The modules will be used for the automaker's sports utility vehicles, and will be manufactured by Mobis inside DaimlerChrysler's production base in Toledo, Ohio, starting in 2006.
"It was a great achievement for our business abroad. We will make further efforts to pitch our products to other global carmakers and will steadily expand in the global part market," said Lee Yeo-sung, chief of Mobis' overseas division.
The module product - a chassis frame equipped with major components such as engine and transmission - generates more than half of Mobis' revenue. In the first half this year, the company's module sales grew 20.7 percent year-on-year to 2.21 trillion won.
DaimlerChrysler and its part suppliers plan to spend $900 million in the Toledo facility to produce redesigned versions of its sport utility vehicles.
The German-U.S. carmaker ended its strategic alliance with Hyundai Motor in May after it had clashed with the Korean partner over Chinese operation. But the two carmakers said they would continue cooperation on individual project basis.
Having held its first automotive parts exhibition in Japan in 2000, Hyundai Mobis hosted scores of shows in the United States, Europe and China.
The company organized "New Partnership 21." a group of 120 domestic parts makers and led them in promoting the competitive price and quality of Korean products.
In late 2002, Mobis participated in the Automotive Aftermarket Products Expo, focusing on modules and powertrains or assemblies of gears and associated parts by which power is transmitted from an engine to a driving axle. Since then, Mobis participated every year to propel exports.
Mobis took part in DaimlerChrysler's automotive parts exhibition early last year, receiving distinguished reputation for its products' quality. Such efforts led to a deal with DaimlerChrysler early last year to supply steering columns worth 35 billion won. Mobis will provide 300,000 steering columns to the carmaker every year.
Aiming to become one of the world's top 10 automotive parts makers, Hyundai Mobis Co. is increasing its sales of original equipment manufacturing parts, aftermarket parts and accessories overseas.
Mobis' worldwide network of distribution centers supply components to global vehicle manufacturers including the Big 3 U.S. carmakers - General Motors Corp., Ford Motor Co. and DaimlerChrysler AG - by using a "just in time" delivery system.
In 2010, the nation's No. 1 automotive parts provider plans to earn 5 trillion won in exports and 10 trillion won in domestic sales.
"Mobis seeks to achieve this goal through expanding its global supply network and production facilities," said Jang Yoon-kyung, director of the firm's public relations.
The company's Overseas Parts Sales Division introduces its products to carmakers, parts makers and parts distributors around the world by participating in automotive parts exhibitions and technical presentations every year.
"We began an overseas market research in November last year. Eight teams covering different regions such as North America, Europe, Commonwealth of Independent States, China, South America and Asia Pacific will map out individual strategies for those markets," said Jang.
Mobis saw worldwide sales of $1.1 billion last year and aims at $1.28 billion this year. Mobis sells 586,542 different aftermarket components in 171 countries through 421 agents and 7,599 dealers.
Hyundai Mobis operates six logistics bases in North America, Europe, Middle East, China and Asia Pacific.
The company plans to set up seven more this year and gradually increase the number to 21.
"When we acquired aftermarket parts sales businesses from Hyundai Motor in February 2000 and from Kia Motors in December 2000, our goal was to reorganize them to provide improved service as soon as possible," said Chung Nam-ki, Mobis senior executive vice president of parts sales.
The company immediately formed a task force team to set up a long-term strategy for efficient product supply, Chung said.
Based on the plan to set up 21 logistics bases, the company began construction of logistics centers in Dubai, Shanghai and Miami.
In August 2001, Mobis took over what is now called Mobis Parts Europe (MPE) in Belgium from Hyundai Motor. The European subsidiary grew into a logistics base storing and supplying diverse automotive components.
Mobis built a giant logistics center with floor space of 15,000 square meters on a site spreading 92,400 square meters in Shanghai in July 2002. In October that year, another logistics base with double the floor space was set up in Dubai, United Arab Emirates.
The Dubai logistics center allowed to reduce the time took in supplying the parts to local distributors from 40 days to 10 days.
In 2002, Hyundai Mobis established an online network that allows its agents to exchange information and purchase parts online. The online system named 'Mobis Global Network' enabled the company to start delivery within a day after it receives orders.
Mobis also sought rationalization of logistics for exports by integrating Kia's three bases across the country into a large-scale center in Asan, South Chungcheong Province, in March 2003. Exports of genuine parts for Hyundai cars are handled in the logistics base in Ulsan, 416 kilometers southeast of Seoul. The integration brought 10 percent cut in logistics costs.
In January 2003, Mobis built a second European subsidiary in Bremen, Germany and in June 2004, it set up a parts center in Miami, Florida. The company opened a joint venture in Beijing last September, and a subsidiary in Moscow in December.
Overseas module plants
As Hyundai Mobis transformed itself into an automotive parts firm, it began adopting the module concept into the domestic industry.
Instead of fitting individual parts on to the car's body, joining modules or packaged functional assemblies of components shortens the production process, reduces the number and weight of parts, thus saving cost.
"As Hyundai and Kia's overseas sales increased, their production plants went global. Module plants followed because quick supply of modules leads to higher competence of auto assemblers," said Chung Hyung-mo, senior executive vice president of Mobis module business.
The first Mobis factory overseas opened in Jiangsu, China in December 2002. Its role was to produce high-quality chassis and cockpit modules for cars made by Dongfeng Yueda Kia, a joint venture of Kia and the two Chinese automakers. The factory's initial production capacity was 50,000 modules per year. It now makes 130,000 units annually.
In March 2003, Mobis broke ground for its Alabama plant, scheduled to produce 300,000 chassis and cockpit modules annually from this year. The plant is only nine miles away from Hyundai Motor's assembly plant in the southern state.
Hyundai Mobis completed another factory in Beijing in November 2003 to supply modules to Beijing Hyundai Motor Co. A transmissions plant was also built in the Chinese capital last April to meet the growing demand for Hyundai and Kia cars in the country.
In efforts to double the current global production capacity of 500,000 units by 2008, Mobis plans to set up a second Jiangsu plant within a year or two, increasing the annual production capacity to 400,000 units. The company will also extend its Beijing production lines to manufacture 600,000 modules per year, and build a new bumper plant in the outskirts of the city.
Hyundai Mobis announced earlier this month that it is scheduled to complete module plants with annual production capacity of 300,000 units in Slovakia by 2006 and in India by 2007.
In August last year, Hyundai Mobis agreed to supply its rolling chassis modules to the U.S. operation of DaimlerChrysler AG under a contract valued at 180 billion won a year.
The modules will be used for the automaker's sports utility vehicles, and will be manufactured by Mobis inside DaimlerChrysler's production base in Toledo, Ohio, starting in 2006.
"It was a great achievement for our business abroad. We will make further efforts to pitch our products to other global carmakers and will steadily expand in the global part market," said Lee Yeo-sung, chief of Mobis' overseas division.
The module product - a chassis frame equipped with major components such as engine and transmission - generates more than half of Mobis' revenue. In the first half this year, the company's module sales grew 20.7 percent year-on-year to 2.21 trillion won.
DaimlerChrysler and its part suppliers plan to spend $900 million in the Toledo facility to produce redesigned versions of its sport utility vehicles.
The German-U.S. carmaker ended its strategic alliance with Hyundai Motor in May after it had clashed with the Korean partner over Chinese operation. But the two carmakers said they would continue cooperation on individual project basis.
Having held its first automotive parts exhibition in Japan in 2000, Hyundai Mobis hosted scores of shows in the United States, Europe and China.
The company organized "New Partnership 21." a group of 120 domestic parts makers and led them in promoting the competitive price and quality of Korean products.
In late 2002, Mobis participated in the Automotive Aftermarket Products Expo, focusing on modules and powertrains or assemblies of gears and associated parts by which power is transmitted from an engine to a driving axle. Since then, Mobis participated every year to propel exports.
Mobis took part in DaimlerChrysler's automotive parts exhibition early last year, receiving distinguished reputation for its products' quality. Such efforts led to a deal with DaimlerChrysler early last year to supply steering columns worth 35 billion won. Mobis will provide 300,000 steering columns to the carmaker every year.
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