An Aggressive
Expansion Plan

Hyundai Mobis continues to expand auto parts making operations to be global leader

Hyundai Mobis Co., Korea's largest auto parts maker, continues its push to expand its overseas operations to be close to its affiliate automakers, Hyundai and Kia, overseas manufacturing plants as well as to sell its auto parts to foreign carmakers including automakers in China and Japan.
Foreign stock investors have increased their shareholdings in Hyundai Mobis encouraged by the company's aggressive expansion aimed at increased profit in the future.
Foreign shareholders stake in the auto parts maker has been increased to 47.7 percent of its outstanding shares. A U.S. investment consultant company, Alliance Bernstein, reported to the Korea Exchange that it has acquired 4,375,980 Hyundai Mobis shares during Sept. 19-21 to boost its stake to 5.11 percent
Securities analysts said the U.S. investor bought the shares to strengthen its stock portfolio in Korean companies viewed its past track records, not with the intention aimed at hostile takeover.
This is evident that the investment company would not have increased its stake in Hyundai Mobis in an attempt at hostile takeover because owners of the company holds a majority of shares, making it hard or nearly impossible for hostile takeovers. Alliance Bernstein with capital amounting to $4.2 billion and invested in the shares of about 10 Korean listed companies including Nongshim and Daelim Industrial Co. in the past and now it holds shares in POSCO, the Industrial Bank of Korea, Hanwha Petrochemical Co. and Hyundai Industry Development, among others.
As its track record shows, Hyundai Mobis has been aggressively expanding its overseas operations extending to China, Japan, to the United States. It has established module factories in Beijing, Shanghai in China and Montgomery, Alabama, in the U.S. to support sales of Hyundai and Kia cars in those countries. The company plans to follow of its global expansion plans by building module factories in Slovakia this year and India next year.
The company recently took over two Korean auto parts makers to expand its production line-up and to supply products to Korean automakers faster. It plans to continue to expand its factories in China, India and other fast-growing auto markets strengthen sales and marketing network around the world.
Mobis plans to expand partnership with Japanese carmakers through aggressive strategies to strengthen its presence in Japan. The company held the Korea Supplier Expo in September last year at a Nissan Motor technical center in Atsugi, near Tokyo to promote various made-in-Korea parts and Japanese carmakers.
On display were a full line-up of Mobis products, including module systems, braking systems, car audio and navigation systems and a wide range of low-end components.
The event was held amid growing attention among Japanese firms for Korean automobile products and the Mobis, which has emerged as a key player in many emerging car markets around the world, where sales of Korean cars have been rising. Japanese carmakers expressed keen interest in Korean module systems that have achieved global competitiveness in terms of quality and technology, Hyundai Mobis officials recalled.
Hyundai Mobis expects Japan's three largest automakers ― Toyota, Honda, and Nissan ― to increase orders for Mobis module products, which have been supplied to a number of global carmakers including Hyundai Motor and Kia Motors.
Under a new motto, "Trust and Innovation,"Mobis seeks to be a respected brand in Japan by expanding partnership with Japanese carmakers. The company plans to increase the supply of module systems in the Japanese market, instead of low-end items.
In the meantime, Mobis took over a Korean auto parts maker in China, signaling an aggressive investment in the world's fastest growing automobile market. The acquisition of the firm in China's Jiangsu Province, which produces brake and steering systems, is part of a Mobis plan to strengthen global supply network and expand businesses in emerging markets company officials said. The company renamed as "Wuxi Mobis"will produce up to 1 million brake systems annually from the current 100,000 and up to 1 million steering pumps from the current 200,000 by 2007.
The Hyundai Motor affiliate is hoping for annual sales of 300 billion won in China by 2007, making it the largest South Korean auto parts maker in China. nw

President Han Kyu-hwan of Hyundai Mobis Co.; An Inside view of a Mobis plant in Montgomery, Ala., the United States.