To survive fierce managerial environment, enterprises are adopting Global Management Strategy as their main growth engine, turning their eyes to the global market. To meet such demands of the times, Hyundai MOBIS has been actively pushing ahead with global management since 2003.
In the first half of this year, Hyundai Kia Automotive Group faced difficulties mainly because of the labor union's pressure, attack of Chinese-made low-priced cars and aggressive offensive by Toyota.
However, Hyundai Kia Automotive Group is now dreaming of another big venture. To let the group achieve the ambitious target, the help of Hyundai MOBIS is indispensable.
Hyundai MOBIS has been helping Hyundai Kia Automotive Group emerge as the world's top automaker through stock management of module parts based on the Just In Sequence (JIS) method, prompted by response to customers' demands and close cooperation with its auto parts suppliers for mutual survival.
Challenging the world by the 30- year-old Hyundai MOBIS
Hyundai MOBIS, the nation's biggest auto parts maker, set global management as the company's management policy in 2003 and has been making a strong push for the global strategy to meet the demands of the times.
Based on the global management, it is actively expanding its business arena to become one of the world's top 10 auto parts makers.
The business structure of Hyundai MOBIS is largely divided into two parts. One is the module parts business that supplies module parts to such carmakers as Hyundai and Kia Motors. And the other is the genuine auto parts business that supplies top-class auto parts for after sales to car buyers rapidly and exactly, seeking maximization of customers' satisfaction.
Hyundai MOBIS established module parts factories in the US, China, Slovakia and India where Hyundai and Kia Motors have advanced into and actively supports production of Hyundai and Kia cars. It also set up main production bases in the world's major logistics centers for effective and rapid supply of auto parts to customers, creating global networks.
Along with this, it has made a strong push for exports of module parts, away from the existing exports focused on simple parts. Related to this, it constructed production lines in the North America factory of DaimlerChrysler among the Big 3 automakers in North America, supplying module parts to the world-famous automaker.
Like this, Hyundai MOBIS is dreaming of developing into a top-class auto parts maker through active advancement into the global market, while striving to help domestic automakers enhance their international competitiveness.
Local module production factories that jack up car quality
To supply parts to not only Hyundai and Kia Motors but also global automakers through just in sequence method, Hyundai MOBIS secured its production bases in many countries, including the US and China and is persistently building global supply chains.
The key reason behind the construction of production bases by Hyundai MOBIS is to help domestic automakers strengthen their international competitiveness by producing and supplying high-quality module parts to them promptly in local regions. As part of such efforts, Hyundai MOBIS has completed the construction of production factories in the US, China, East Europe and India and has been reinforcing global sourcing.
To maximize the quality of module products, it has also opened overseas technology research centers in Frankfurt in Germany, Detroit in the US and Shanghai in China and has exerted best efforts to enhance quality of locally producing auto parts.
The first plan of Hyundai MOBIS to establish overseas production bases started in Jiangsu, China where Kia Motors advanced into.
Jiangsu MOBIS, a corporation 100% wholly owned by Hyundai MOBIS, was established in December 2002 to produce and supply chassis and driver seat modules to local makers of Pride and Accent in China.
The Jiangsu Factory has a production capacity of 50,000 units annually. It also completed the construction of the second factory in Jiangsu to produce and supply core modules for Serato Face-lift cars.
Following Jiangsu MOBIS, Hyundai MOBIS set up Beijing MOBIS for the second time in China to produce and supply module parts through just in sequence method to production lines of Beijing Hyundai Motor Company.
Beijing MOBIS is supplying inpanel, drivers' seat and chassis modules for the manufacture of EF Sonata, Avante XD, Tuscan and Verna cars.
In particular, chassis modules produced in the Beijing factory are the next-generation chassis module equipped with engines and transmission, widely different from general chassis equipped with brake disks and struts.
Meanwhile, Beijing MOBIS is now building the second factory with an annual production capacity of 300,000 cars as the cars produced by Beijing Hyundai Motor Company gain high popularity in China.
Shanghai MOBIS, established in a land of 82,500 square meters, is producing and supplying airbags and steering column shafts to production corporations in China invested by Hyundai and Kia Motors, including Beijing Hyundai Motor Company.
In particular, Hyundai MOBIS established an advanced technology test center equipped with global-level state-of-the-art test equipment in the Shanghai Corporation for the first time among Korean auto parts makers.
Hyundai MOBIS recently established a module factory near Montgomery City in Alabama in the US where Hyundai Motor advanced into, actively supporting Hyundai Motor's entry into the North American market.
The corporation with an annual production capacity of 300,000 units was established in a land of 660,000 square meters to produce chassis and drivers' seat modules and bumpers for manufacture of North America NF Sonata and Santa Fe models.
The factory is equipped with advanced production infrastructure to supply topquality products, including an electronic monorail system (EMS). It also introduced an enterprise resource planning (ERP) system to strengthen transparency of such businesses as production, materials, personnel affairs, accounting and wages.
In particular, Hyundai MOBIS is building a new factory in Georgia State for operation in 2009 to cement its status as a global auto parts supplier in the American market.
Following China and North America regions, Hyundai MOBIS built a module factory in Zilina, Slovakia where Kia Motors is making massive investment to advance into the European market. MOBIS Slovakia, with an annual production capacity of 300,000 units, was set up in an area of 561,000 square meters to supply drivers' seat, chassis, front-end modules, and bumpers for manufacture of C'eed from November 2006.
It also established a corporation in Czechoslovakia in December 2006 and plans to supply module parts to i30, an Europe-style strategic car, from 2009. Meanwhile, it established a module factory in India to produce and supply core three modules to Hyundai Motor, which has cemented its status in India with the successful sales of Santro models.
Supply of complete chassis modules to DaimlerChrysler
Hyundai MOBIS has been actively pushing for supply of auto parts by module unit to foreign carmakers, away from the existing supply of module parts to Hyundai and Kia Motors. As a result, Hyundai MOBIS concluded a contract with DaimlerChrysler in 2004 to supply complete chassis modules to the global carmaker. Hyundai MOBIS won the contract through an international bidding by global auto parts makers, gaining high reputation for its high technology in the international arena.
Related to this, it built a corporation in the Supplier Park of DaimlerChrysler's Toledo Factory in Ohio, the US, to produce complete chassis modules from August last year.
Based on its know-how and technology accumulated from the factory operation, Hyundai MOBIS plans to expand its supply of auto parts by module unit to other world-famous carmakers in the future.
Hyundai MOBIS' challenge toward top position
Through successful restructuring in 1999, Hyundai MOBIS has begun to be reborn as an auto parts professional company. In particular, it actively introduced a module system for auto parts and possessed advanced module production system through persistent investment.
As a result, Hyundai MOBIS ranked 19th in the world in terms of 2006 sales of auto parts surveyed by FOURIN, a Japanese professional auto market survey institution.
It indicates that the ranking of Hyundai MOBIS has continuously risen since 2002 when it started the module business for the first time. Encouraged by this upward trend, it is making all-out efforts to become one of the global auto parts suppliers.
Now, it aims to enter the ranks of the world's top 10 auto parts makers before 2010 by making persistent R&D investment and possessing the top-class auto parts manufacturing technology.