Hyundai Mobis Steps on the Gas to Expand Presence in China
- Strives to become one of the global top ten automotive parts makers

Hyundai Mobis has unveiled a plan to raise its annual production in China from  500,000 units to 1 million units by 2008.

The latest plan is part of Hyundai Mobis's vision of becoming one of the world's top 10 automotive parts makers by 2010.

Hyundai Mobis, Korea's largest automotive parts maker announced on Oct. 5 that it would usher in an era of producing 1 million module units per annual in China by building more plants.

To reach this goal, Mobis plans to raise the seat and chassis production capacity of its Jiangsu plant, the parts supplier of Donfeng Yueda Kia Motors, from the current 130,000 units to 400,000 units by 2008. Mobis said negations are under way on purchasing the site of its second driving seat and chassis plant in Jiangsu with an annual production capacity of 270,000 units, to be dedicated in the next two or three years.

Mobis will build more lines in a bid to raise the driving seat and chassis capacity of its module plant in Beijing, the parts supplier of Beijing Hyundai Motor, from current 300,000 units to 600,000 units per annum by 2008. The company also plans to build a new bumper plant with an annual production capacity of 300,000 units by 2005 near the existing Beijing module plant.

Suh Yong-jong, managing director in charge of the AT business division at Hyundai Mobis, said "The module production system lies at the center of carmakers strategy to push for integrating platforms in pursuit of the economy of scale, and in case of integrating platforms, only replacing module units could lead to producing diverse car models. As a result, the specialized module maker, Hyundai Mobis's simultaneous entry to foreign markets along with its carmakers, Hyundai Motor and Kia Motors Corp. would be a boon for enhancing their competitive edge".

Earlier, Hyundai Motor and Kia Motors Corp. announced a plan to increase their combined car production capacity to 1 million cars by 2008 in a bid to make China their key overseas production base.

Hyundai Mobis's Beijing plant will produce front-end modules as well as driving seats and chassis modules for manufacturing Hyundai Motor Tucson beginning next May.

In early September, Hyundai Mobis inked a deal to establish a joint logistics joint venture designed to deal with the supply of after-sale parts for cars from Beijing Hyundai Motors. The company has decided to double the annual production capacity of the transmission line of the Beijing plant to 200,000 units per annum. Hyundai Mobis will push such projects as a steering column plant capable of making 450,000 units annually, scheduled for completion by the end of this year, as part of its efforts to back the Hyundai Automotive Group's expanded presence in the Chinese market.

In a related development, Hyundai Mobis is building driving seat and chassis module plants with an annual production capacity of 300,000 units in Alabama, the United States, and Slovakia, Eastern Europe, scheduled for dedication in late 2004 and 2006, respectively, in keeping with Hyundai Motors and Kia Motor Corporation entry to the markets.

Early this year, Park Jeong-in, Hyundai Mobis chairman-CEO, said all staff members of Hyundai Mobis would devote themselves to striving for the vision of becoming one of the world's top 10 automotive parts makers.

To this end, Hyundai Mobis has launched a plan to raise sales in the overseas sector to 5 trillion won by 2010 with a target of growing into a global automotive parts player with 15 trillion won in sales from domestic and overseas fronts during the same year.

Hyundai Mobis was established four years ago to supply auto parts to Hyundai Motor Co. and Kia Motors Corp. In 2002, Mobis was spun off from Hyundai Precision and Industry, a maker of storage tanks, military battle tanks, rail cars, and SUVs. Mobis signed technology-licensing agreements with foreign and Korean companies. In July 2002, Mobis acquired the chassis operations of Korean parts maker Mando Corp. The acquisition has made Mobis Korea's largest automotive parts maker.   nw