Upgrading Auto Parts Quality Further

Hyundai Mobis out to catch Denso and Bosch in auto parts technology and production, celebrates 31st anniversary

Hyundai Mobis, a leading auto parts maker in the country, is ready to challenge the world auto parts industry and catch up with such giants as Denso in Japan and Bosch of Germany by 2015 at the latest.
The company, which celebrated its 31st anniversary July 1 and is a member of the Hyundai-Kia Automotive Group, already has 11 overseas production plants in such key car market countries as the United States, China, India and Slovakia and the company has plans to build additional plants in the Czech Republic, the U.S. next year and a new plant in Russia in 2010 to bring its total auto parts production high enough for 6 million cars including 3 million at home and 3 million overseas by 2011.
The company has a total of about 10,000 dealers in 201 countries including 18 logistics centers to not only sell its auto parts, but to take care of after service. The expanded accessibility of the company's auto parts around the world is one of the stronger points that Hyundai and Kia enjoy in selling their cars worldwide.
The core of Hyundai Mobis'technologies is the production of modules, which are made up of some 20,000 auto parts put together in different modules and supplied to the finished carmakers. The complete carmakers only have to put together modules to make complete cars, cutting down on assembly time.
The development of modules for automobiles is considered the second revolution in auto production after Ford's invention of the assembly line. In the past, an automaker had to get supplies of auto parts from vendors and put the parts together by themselves. But not anymore. They get modules from auto parts suppliers such as chassis modules, front-end modules, driver's seat modules and assemble them. As the saying goes, they can produce a car in a minute because all the carmakers have to do is put together those modules.
The company's focus has been on the localization of key auto parts including the production of brakes, airbags and others. The company spent 60 billion won on the development of a high-tech antilock-brake system (ABS) and succeeded. The company has been producing its own Mobis Electronic Brake System on a commercial basis, no longer importing the equipment from Bosch in Germany.
The company developed its own airbag system in March and has been putting it into Hyundai and Kia cars. The new airbag reduces the impact on passengers next to the driver's seat when it opens through a special sensor.
The company is working on a new technology to prevent collisions by cars through a safety system such as the one developed by Mercedes Benz, company officials said. They said TRW Co. in the U.S. and ZW Co. of Germany have the technology to produce the high-tech equipment.
The company is very proud of the fact that it set up a facility to produce the chassis module at a Chrysler plant in Ohio, U.S.A., which produces the Jeep Wrangler. Hyundai Mobis was selected by Chrysler as its Partner to supply the chassis for the Jeep under its global sourcing plan.
Hyundai Mobis plans to supply its auto parts to other global automakers by upgrading their quality and price competitiveness.
The company is targeting Chinese automakers to increase supplies of its auto parts to foreign automakers. In fact, the company concluded a contract to supply $40 million worth of air bags and brake parts to a Chinese carmaker this year and hopes to expand its auto parts supplies to automakers in Europe and the U.S. in the near future, Vice President Lim Chae-yong of the Module Business Headquarters said recently. nw

An inside view of Hyundai Mobis plant for modules.

President Chung Suk-soo of Hyundai Mobis