A Top Auto Parts Maker

Hyundai Mobis strives to rank among top 10 auto parts makers by 2010

Hyundai Mobis Co. will eye on achieving 8.610 trillion won in sales this year by further expanding its growth, profit and technology to be a world-class auto parts maker in the world under a slogan, "Strengthening Global Competitive Power through Change and Innovation."The management strategy has been set at a meeting on Feb.26 held at the company's technical research institute in Yongin, Gyeonggi Province, near Seoul with over 100 officers and staff attending.
The target figure is up 5.4 percent from last year and in order to reach it, the company plans to boost productivity and marketing efforts in the U.S. and China, along with the establishment of an integrated inventory system linking all of the company's production facilities at home and overseas.
The company figures its overseas sales would increase 29 percent this year with auto parts produced at its plants in foreign countries including Slovakia, and India and module plant located in Chrysler plant facilities in the United States taking up a lion's share of its overseas sales.
The company will also expand its logistics centers to supply auto parts to after service centers of Hyundai and Kia motors around the world.
In the area of module production, the company plans to build a second plant to produce driver's seats, chassis, and front for 300,000 cars in Jiangsu Province, China and a plant in India to produce the three largest auto parts for 600,000 vehicles as part of its strategy to expand overseas production bases.
In steps with Hyundai and Kia's global expansion, the company plans to build module plants in Czech and the state of Georgia in the U.S.
and increase complete chassis modules to car and auto parts makers as it has been doing successfully to Daimler-Chrysler.
In the area of after service auto parts business, Hyundai Mobis will set up logistics centers for its auto parts in India, South America and Europe which will use bar codes to manage the shipment of auto parts in and out of the centers and the system will be expanded to maximize the capability and effectiveness of auto parts for after services for autos sold by Hyundai and Kia car companies.
Hyundai Mobis has set this year as the initial year for enhancing its global competitiveness in terms of price and new growth engine search and to strengthen its internal capacity to spur its growth. The company hopes to reform its plants at home and abroad to boost their productivity and look for cooperative firms and
help them to reduce production costs as part of its move to improve profitability.
To expand the new growth engines, the company will strengthen the productivity of its core production plants at home and abroad and expand the number of new growth engines and install the performance based evaluation system to bring changes and renovation across the board of the company's operations to achieve reform of management system.
All of these moves and efforts are geared to making the company to be among
the 10 best auto parts makers in the world.
Hyundai Mobis, one of the world's top 20 automotive parts makers, jointly held promotional exhibits with smaller Korean suppliers to tap into the Japanese car parts market.
With support from the Ministry of Commerce, Industry and Energy, the company staged the "Korean Commercial Vehicle Parts Showcase 2006"at the headquarters of Japan's major commercial vehicle manufacturers Nissan Diesel and Isuzu Motors. Some 20 parts suppliers including Hanjoo Metal,
Daeseung Precision and Anjun Industrial Col also took part in the show.
The company aimed to receive new orders by promoting Korean-made parts at the headquarters of Nissan Diesel in Saitama on Oct. 26 and Isuzu Motors in Kanagawa on Oct. 28 where 500 local purchasing staff and engineers were present.
Mobis plans to tap into the third largest export market for Korean automotive parts makers after China and the United States amidst carmakers'efforts for global sourcing. Since 2000, Mobis has visited Japanese carmakers such as Toyota, Nissan, Honda and parts makers including Mitsubishi to showcase Korean-made parts. As a result, exports of Korean parts to Japan more than tripled from 2000 to over 300 billion won in 2004.
In addition to its expansion in the Japanese market, Mobis successfully began supplying modules or functional sets of parts to DaimlerChrysler in August, 2006. nw

(photo clockwise) Hyundai Mobis officials explain to Japanese customers Korean auto parts on display at the headquarters of Nissan Diesel in Saitama, Japan, last year.: An inside view of Hyundai Mobis plant in Montgomery, Alabama, the U.S.: A new front-end module made by Hyundai Mobis with environment-friendly material.

An inside view of Hyundai Mobis plant in Korea, assembling passenger car modules.

A view of Hyundai Mobis Cartronics R&D Center.