All the latest news for independent workshops.
Hyundai Mobis wins $2bn order from Chrysler
Date Listed: 03/09/2009
Hyundai Mobis Co., South Koreas largest automotive components manufacturer, has won a $2 billion contract from Chrysler Group LLC, the largest overseas contract for the Seoul- based company.
Hyundai Mobis, a division of Hyundai Motor Co., will supply front and rear chassis modules for Chryslers Jeep Grand Cherokee and Dodge Durango. Modules are pre-assembled parts kits that can be quickly installed by vehicle manufacturers.
Hyundai Mobis is looking to increase sales to carmakers other than Hyundai and Kia Motors Corp. to about 30% of its total revenue, representing an increase of 20% over current levels. The long-term vision is to diversify clients and reduce risk. The company has been providing chassis modules for Chryslers Jeep Wrangler since 2006 from its factory in Ohio.
Stephen Ahn, head of research at LIG Investment & Securities Co. said Mobis has been enhancing its quality and price competitiveness over peers, and it should be able to boost its presence in the global auto industry together with Hyundai and Kia.
Mobis will install a new production line at its U.S. factory close to Chryslers Jefferson North Assembly Plant in Detroit, they aim to begin test production from February 2010.