Hyundai Mobis_Business Report FY2009
Business Highlights
Highlights in FY2009 (FY ended Dec. 31, 2009)
-The Company announced that Mobis Alabama LLC of the U.S. has absorbed Mobis Alabama Instrument Panel, LLC, a manufacturer of automotive instrument panels. (From a press release on Jan. 8, 2009)
-The Company and LG Chem Ltd. agreed to establish a joint-venture company to manufacture lithium-ion batteries. The new company, which will be formed in January 2010, is scheduled to begin commercial production in the latter half of the same year. Hyundai Mobis will have a 51 percent stake in the new company while LG Chem will own the remaining 49 percent. These two companies are establishing a new plant that will produce 200,000 battery packs a year. The plant will be built on the premises of Hyundai's plant that produces auto parts for hybrid vehicles, located in Uiwang, Gyeonggi-do. It will assemble battery packs made up of LG Chem's electric cells and ship them to Hyundai Mobis, which will in turn supply them to both Hyudai Motor and Kia Motors. Investment in this project is expected to reach 50 billion won by 2013. (From a press release on Nov. 2, 2009)
-The Company will supply rear combination lamp assemblies for medium-size vehicles produced by BMW. The company will manufacture halogen and LED lamps at Jiangsu Mobis Automotive Parts, its Chinese facility, and supply them to BMW's plants in Germany (Munich and Regensburg), South Africa, and China over a period of three years starting from 2011. The Company has become the first among Korean manufacturers to supply lamps to BMW. In addition, it also won program business to supply rear parking brakes for General Motors' Cadillac vehicles. Over a period of eight years, the Company will manufacture 900,000 brakes at its Changwon Plant and supply them to the Grand River Plant of General Motors. These two programs, namely with BMW and General Motors, are expected to generate 90 million dollars in sales. (From a press release on Oct. 29, 2009)
Chrysler
-The Company's front and rear chassis modules were chosen by Chrysler for use in both the 2011 model Jeep Grand Cherokee and the Dodge Durango. The program is expected to add 2 billion US dollars to its sales. In order to expand its production capacity, the Company is going to establish a new plant adjacent to the Jefferson North Assembly Plant (JNAP) in Detroit, Michigan. Trial production is scheduled to begin in February 2010. (From a press release on Sep. 3, 2009)
-The Company has been awarded a contract to supply 1 million sets of fog lamps to Chrysler. Production is being handled at IHL, its subsidiary located in Gyeongju City. The contract is worth approximately 70 million US dollars. It aims to win businesses to supply also adaptive front lighting systems and LED headlights to Chrysler. (From a press release on Jul. 10, 2009)
Daimler
-The Company will supply car audio systems to Daimler. In addition to this program business, which is valued at 35 million US dollars, it will also provide Daimler with intelligent battery sensors worth 95 million US dollars in sales. The Company says it has already started production and export of these products. (From a press release on Jul. 31, 2009)
Vollkswagen
-The Company will supply automotive lamps to Volkswagen. Production and export of these products, which is worth approximately 20 million US dollars in sales, have already begun. (From a press release on Jul. 31, 2009)
-The Company has produced an aggregate total of 20 million airbags since it began producing them in 2002. It currently manufactures four types of airbags, namely driver airbags, front passenger seat airbags, side airbags, and curtain airbags at its Cheonan plant. These products are featured on 15 vehicle models produced by Hyundai Motor and Kia Motors. The Company has also completed developing a knee airbag, which is scheduled to go into mass production in 2011. In addition, it is also developing a new airbag designed to protect pedestrians at the time of a collision. (From a press release on Nov. 9, 2009)
-The Company announced that it plans to generate 2.2 trillion won in sales at its automotive OEM business in fiscal year 2015, with 50 percent expected to come from sales of its main components. In fiscal year 2009, sales at the division are expected to be around 1.2 trillion won, of which main component sales are forecast to account for approximately 30 percent. (From a press release on Jul. 2, 2009)
Financial Overview |
(in billions of won) |
| FY2009 | FY2008 | Rate of change |
Remarks | |
| Sales | 10,633.0 | 9,373.3 | 13.4% | Sales at the Module Division stood at 7,193.9 billion won, which accounted for 67.7 percent of the Company's overall revenue. |
| Operating income | 1,422.2 | 1,186.5 | 19.9% | - |
| Net income |
1,615.2 | 1,089.9 | 48.2% | - |
Absorption
-The Company announced at a special shareholders' meeting it held that it won its stockholders' approval to acquire and merge Hyundai Autonet According to Hyundai Mobis, the merger is projected to bring about more than 600 million won in synergistic effects by 2015. The merger is scheduled to be completed on June 25, 2009. (From a press release on May 22, 2009)-The Company announced that Mobis Alabama LLC of the U.S. has absorbed Mobis Alabama Instrument Panel, LLC, a manufacturer of automotive instrument panels. (From a press release on Jan. 8, 2009)
Establishment of New Companies
Korea-The Company and LG Chem Ltd. agreed to establish a joint-venture company to manufacture lithium-ion batteries. The new company, which will be formed in January 2010, is scheduled to begin commercial production in the latter half of the same year. Hyundai Mobis will have a 51 percent stake in the new company while LG Chem will own the remaining 49 percent. These two companies are establishing a new plant that will produce 200,000 battery packs a year. The plant will be built on the premises of Hyundai's plant that produces auto parts for hybrid vehicles, located in Uiwang, Gyeonggi-do. It will assemble battery packs made up of LG Chem's electric cells and ship them to Hyundai Mobis, which will in turn supply them to both Hyudai Motor and Kia Motors. Investment in this project is expected to reach 50 billion won by 2013. (From a press release on Nov. 2, 2009)
Contracts
BMW, GM-The Company will supply rear combination lamp assemblies for medium-size vehicles produced by BMW. The company will manufacture halogen and LED lamps at Jiangsu Mobis Automotive Parts, its Chinese facility, and supply them to BMW's plants in Germany (Munich and Regensburg), South Africa, and China over a period of three years starting from 2011. The Company has become the first among Korean manufacturers to supply lamps to BMW. In addition, it also won program business to supply rear parking brakes for General Motors' Cadillac vehicles. Over a period of eight years, the Company will manufacture 900,000 brakes at its Changwon Plant and supply them to the Grand River Plant of General Motors. These two programs, namely with BMW and General Motors, are expected to generate 90 million dollars in sales. (From a press release on Oct. 29, 2009)
Chrysler
-The Company's front and rear chassis modules were chosen by Chrysler for use in both the 2011 model Jeep Grand Cherokee and the Dodge Durango. The program is expected to add 2 billion US dollars to its sales. In order to expand its production capacity, the Company is going to establish a new plant adjacent to the Jefferson North Assembly Plant (JNAP) in Detroit, Michigan. Trial production is scheduled to begin in February 2010. (From a press release on Sep. 3, 2009)
-The Company has been awarded a contract to supply 1 million sets of fog lamps to Chrysler. Production is being handled at IHL, its subsidiary located in Gyeongju City. The contract is worth approximately 70 million US dollars. It aims to win businesses to supply also adaptive front lighting systems and LED headlights to Chrysler. (From a press release on Jul. 10, 2009)
Daimler
-The Company will supply car audio systems to Daimler. In addition to this program business, which is valued at 35 million US dollars, it will also provide Daimler with intelligent battery sensors worth 95 million US dollars in sales. The Company says it has already started production and export of these products. (From a press release on Jul. 31, 2009)
Vollkswagen
-The Company will supply automotive lamps to Volkswagen. Production and export of these products, which is worth approximately 20 million US dollars in sales, have already begun. (From a press release on Jul. 31, 2009)
Production
Airbags-The Company has produced an aggregate total of 20 million airbags since it began producing them in 2002. It currently manufactures four types of airbags, namely driver airbags, front passenger seat airbags, side airbags, and curtain airbags at its Cheonan plant. These products are featured on 15 vehicle models produced by Hyundai Motor and Kia Motors. The Company has also completed developing a knee airbag, which is scheduled to go into mass production in 2011. In addition, it is also developing a new airbag designed to protect pedestrians at the time of a collision. (From a press release on Nov. 9, 2009)
Modules
-The Company established a new plant in the Czech Republic. The new facility will manufacture a combined total of 300,000 complete chassis modules, cockpit modules, and front-end modules per year, supplying them to Hyundai Motor's Czech Republic plant and other facilities. This is its second plant in Europe, following the one it completed in Slovakia in 2007. (From a press release on Sep. 25, 2009)Lamps
-The Company announced that it has started commercial production at its new headlamp plant in Gimcheon, Gyeongsangbuk-do, Korea. It invested approximately 70 billion won in the new plant, which will have the capacity to produce 1 million lamps per year. The Company's annual lamp production capacity will total five million units when combining the production capacity of this new plant along with that of its Korean subsidiary, IHL; and its subsidiary in Jiangsu, China. The Gimcheon facility will supply its headlamps to Kia for use in the Sorento R, the successor model to the Sorento. Its products will be also featured on the Kia VG (the vehicle's development code), which will roll off the assembly line at the end of 2009; as well as in the successor vehicles to both the Kia Lotze and the Hyundai Verna, which are scheduled to go into commercial production in late 2010. The Company aims to boost annual sales at its automotive lamp business to 150 billion won by 2012. (From a press release on May 27, 2009)Business Plans
-In the fiscal year ending December 2010, the Company looks to generate 21 trillion won in sales, which includes 11,700 billion won in domestic Korean sales. It plans to invest 940 billion won and spend 320 billion won in research and development for the year. (From a press release on Feb. 1, 2010)-The Company announced that it plans to generate 2.2 trillion won in sales at its automotive OEM business in fiscal year 2015, with 50 percent expected to come from sales of its main components. In fiscal year 2009, sales at the division are expected to be around 1.2 trillion won, of which main component sales are forecast to account for approximately 30 percent. (From a press release on Jul. 2, 2009)
R&D
R&D Structure
| Facility | Location |
| Yong-in (CarTronics) R&D Center | Yong-in, Gyeonggi-do, Korea |
| Shanghai R&D Center | Shanghai, China |
| Detroit R&D Center | Detroit, China |
| Frankfurt R&D Center | Frankfurt, Germany |
| Hyundai Autonet India Engineering Pvt. Ltd. | Hyderabad, India |
R&D Expenditure (Non-consolidated) |
(in billions of won) |
| - | FY2009 | FY2008 | FY2007 |
| Amount | 204.3 | 121.2 | 92.9 |
| % of sales | 1.92% | 1.29% | 1.10% |
Technology Partnership
-The Company signed a strategic partnership with Continental Automotive of Germany. Based on the agreement, the two companies will form a cooperative framework to jointly develop new technology and products in the fields of "electric" and "electronics" for vehicles. In addition, the companies will build a cooperative sales network for conducting sales activities. As a result of the collaboration, the Company intends to accelerate development of auto parts for hybrid and fuel-cell vehicles. (From a press release on Jun. 5, 2009)-The Company and Samsung LED signed a contract to develop jointly LED headlamps and modules. The two companies plan to complete development activities by the end of 2009 and start supplying new products to Hyundai Motor and Kia Motors in 2010. This project marks the first joint development program by the Hyundai Motor Group and the Samsung Group. (From a press release on Apr. 30, 2009)
R&D plans
-Korea's Ministry of Knowledge Economy announced that it will invest over the next year or two approximately 155 billion won in several growth areas. In the area of LED technology, Hyundai Mobis will collaborate with Samsung LED and other companies to develop LED headlamps. Development of green cars will be led by Daesung Electric Co., Ltd.; Hyundai Mobis; Korea Electric Terminal Co., Ltd.; and Daewon Kangup Co., Ltd., which will work on the development and commercialization of major components. Application studies on renewable energy will be carried out by Halla Climate Control Corp.; Inzi Controls Co., Ltd.; Sejong Industrial Co., Ltd.; and the Namyang Research Center of Hyundai Motor. Hyundai Motor, Hyundai Autonet, Samsung Electric will develop semiconductors for next-generation vehicles. These projects are planned to be completed by the middle of 2010. (From a press release on Jul. 8, 2009)-In the fiscal year ending December 2010, the Company plans to invest 940 billion won and spend 320 billion won in research and development for the year. (From a press release on Feb. 1, 2010)
-The Company plans to invest 1.2 trillion won by 2015 in developing new technologies for next-generation vehicles. And in addition to working on developing proprietary hybrid parts as soon as possible, it aims to create core technologies that will support plug-in hybrid vehicles and fuel-cell systems. Based on these development projects, the Company will double the number of its R&D staff, from 1,000 to more than 2,000. (From a press release on Jul. 2, 2009)
Investment Activities
Capital Expenditure |
(in billions of won) |
| - | Planned amount of investment | Amount invested in FY2009 |
Planned amount of investment from FY2010 onwards |
| Module Business | |||
| -Gimcheon lamp plant | 76.5 | 51.9 | 24.6 |
| -Changwon CBS plant *CBS : Conventional Brake System |
276.6 | 191.7 | 84.8 |
|
Electronics business |
181.1 | 97.9 | 83.1 |
| Others | 694.4 | 690.9 | 3.5 |
| Total | 1,228.6 | 1,032.5 | 196.1 |