It’s been 10 years since Hyundai Mobis, S. Korea's largest auto parts maker, started to supply chassis modules to American car maker Chrysler. Hyundai Mobis' chassis module supply to Chrysler is expected to reach 4 million units by the end of this year.
Its Ohio plant has an annual production capacity of 246,000 units and produces complete chassis modules for Chrysler's Jeep Wrangler.
The Ohio plant’s module production jumped from a mere 40,000 units in July 2006 (the first year of mass production) to 156,000 units the following year and topped 220,000 units in 2013 and 245,000 units in 2015. This plant’s cumulative output reached 1,745,000 units at the end of June this year.
Its plant in Michigan produces front and rear chassis modules for the Jeep Grand Cherokee and the Dodge Durango.
The Michigan’s production rose sharply from 105,000 units in 2010 (the first year of mass production) to 365,000 units in 2015. Its cumulative output topped 1.88 million units at the end of June this year.
The two plants are expected to produce 584,000 units this year, a 14-fold increase from Mobis North America’s first-year output of 40,000 units in 2006.
Hyundai Mobis’ module supply to Chrysler dates back to 2004. At that time, Chrysler was looking for a supplier of complete chassis modules for the Jeep Wrangler JK.
Chrysler was new to adopting complete chassis modules to its auto production. Tenders were invited and Hyundai Mobis joined the fray.
Hyundai Mobis made a presentation on its module production capacity and Chrysler’s management team even carried out thorough inspections of Hyundai Mobis’ plants in S. Korea. In 2005, the contract was awarded to Hyundai Mobis.
The complete chassis module includes the engine, transmission, steering system and suspensions on the chassis frame, i.e. the undercarriage of the car. It is a core module which makes up 50 percent of all parts in an automobile.
Hyundai Mobis received additional orders for the chassis modules used in the Jeep Cherokee and Dodge Durango in 2010. As Chrysler’s strategic partner, Hyundai Mobis participated in the bidding as a single vendor without any competitors.
Above all, the Jeep Grand Cherokee is Chrysler’s core model that enjoys high customer loyalty. As the US auto market is recovering and the SUV fever continues to sweep across the US, the Michigan plant is now firing on all cylinders, churning out more than its annual capacity of 360,000 units.
