Three Decades of Astounding Growth

Hyundai Mobis celebrates 30th anniversary setting all kinds of records

Hyundai Mobis Co., an affiliate of the Hyundai-Kia Automotive Group celebrated its 30th anniversary June 28, boasting its profit soared 400,000 times last year compared to its initial year of operation 30 years ago.
The company, one of the largest auto parts maker in the world saw its sales jump 17,000 times during the three decades of its operation. The company first turned out its products, containers, on a hillside in Ulsan, not having its plant yet, but now Hyundai Mobis has 49 subsidiaries around the country, truly becoming a global company.
The company is now the top maker of containers in the world, produces a Korean-style tanks, has the largest sewage treatment facility, supplies complete chassis modules to Chrysler, among the company major undertakings.
From 2000, the company saw its sales increase by 1 trillion won every year, making the company 20th largest in sales among auto parts makers in the world.
Vice Chairman and CEO Han Kyu-hwan, at the ceremony,
said Hyundai Mobis should strive to become a top auto parts maker in the world, falling back on its expertise accumulated in the past 30 years.
Hyundai Mobis is making a step towards becoming a global parts maker by expanding its global production network and manufacturing of core parts such as lamps, steering and brake systems.
The company told stock analysts and fund managers on March 9 at the Korea Exchange building in Seoul that it plans to invest 675 billion won, up 26.4 percent from last year. Mobis said at the investor relations session it will beef up sales by 5.4 percent to 8.61 trillion won and operating profit by 3.8 percent to 848 billion won. It also plans to bring the debt ratio down to 61.5 percent.
To achieve such goals, Hyundai Mobis said it will strengthen the manufacturing of core parts, develop an electronic chassis technology and expand global production bases and after-market parts exports.
Aiming to become one of the world's top 10 parts makers, Mobis plans to innovate upon its management system to raise cost competitiveness amidst the Korean's won't climb and unstable oil prices.
In addition to enlarging production capacity at Jiangsu, China, Mobis will begin making modules in India, break ground for new factories in the Czech Republic and the southern U.S. state of Georgia, and push for construction of a second plant in Beijing. Having succeeded in supplying complete chassis modules to Chrysler last year, Hyundai Mobis will continue to seek to broaden its customer base.
The company plans to increase the production capacity of anti-lock brake systems and electronic stability control systems from the current million units to 2.4 million units, conventional brake systems from 1.7 million to 3 million units and airbags from 2.2 million to up to 3.25 million units.
As for steering systems, Mobis said it will double the output of motor-driven power steering systems and steering columns to 800,000 and a million units, respectively, while increasing the production of lamps from 730,000 to 2.03 million units.
The company also plans to double the number of its overseas logistics bases to 28 and integrate its domestic network to maximize customer satisfaction.
It will develop and extend new lucrative businesses by launching a second brand and stretching out its after-market business. Wider usage of the bar code system which helps keep track of product delivery would raise operational efficiency, Mobis said.
For research and development, Mobis has earmarked some 117.6 billion won in investment, up 26.5 percent from last year. The company plans to develop an integrated chassis control system which controls the steering, brake and suspension, head lamps with core functions and a safety system that puts the airbag, the belt and the steering part to work. nw

Dignitaries including Vice Chairman Han Kyu-hwan cut the cake at the ceremony marking the 30th anniversary of Hyundai Mobis on June 28.

Vice Chairman and CEO Han Kyu-hwan