Hyundai Mobis Co., Ltd. Business Report FY ended Dec. 2013

Business Highlights

Highlights in FY2013 (FY ended Dec. 31, 2013)

Financial Overview (Consolidated)

(in billions of won)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of
change (%)
Sales 34,198.5 30,789.0 11.1 Sales at the Module Division stood at 27,022.3 billion won, which accounted for 79.0 percent of the Company's overall revenue.

-Percentage of sales by customer (Module Division) 
Hyundai Motor : 27.7%
Kia Motors : 22.7%
Beijing Hyundai  : 17.1%
Total : 67.5%
Operating income 2,924.4 2,906.3 0.6 -
Net income 3,396.4 3,542.0 (4.1) -


Hyundai Kia
-The Company is supplying active seatbelts (ASBs) for Hyundai Motor's new Genesis. Integrated with a vehicle's adaptive cruise control system and lane keep assist system, the seatbelt is designed to receive information from these systems and warn the driver of potentially dangerous situations. The ASB, which was developed jointly with Takata of Japan, uses 40 percent fewer components and is lighter than competing products. Other major features of the system include low motor noise. (From a press release on December 12, 2013)

-The Company announced that its driver-side airbags, passenger-side airbags, side airbags, curtain airbags and knee airbags are used on the 2014 model of the Kia Morning small passenger vehicle. (From a press release, September 27, 2013)

-Mobis Alabama, LLC is supplying car audio systems for the Hyundai Sonata assembled at Hyundai Motor Manufacturing Alabama (HMMA). (From a press release, September 2, 2013)

-Mobis Alabama, LLC is supplying bumpers for the Hyundai Sonata and Elantra assembled at Hyundai Motor Manufacturing Alabama (HMMA). Mobis Alabama also produces bumpers for the Kia Optima and Sorento, and Hyundai Santa Fe, which are produced at Kia Motors Manufacturing Georgia (KMMA). (From a press release, September 2, 2013)

-In March 2013, the Company started supplying hybrid control units, battery systems, drive motors and inverters it developed for the Hyundai Blue City CNG hybrid bus. It will deliver parts for 10,000 buses over the next 10 years. (From a press release, June 20, 2013)

-Shanghai Hyundai Mobis Automotive Parts Co., Ltd. is supplying airbags for the Beijing Hyundai Sonata and the Dongfeng Yueda Kia Motor K3 and K5. The Chinese subsidiary manufactures driver seat airbags, front passenger seat airbags and side airbags. (From a press release, May 1, 2013)

-The Company has been awarded a program to supply headlamps and rear lamps to Chrysler of the U.S. The agreement is worth approximately 530 million US dollars, the largest lamp program the company has ever won. This is the fifth time that Hyundai Mobis' lamps were chosen by Chrysler since 2007. The company won the first contract from the automaker in 2007. (From a press release, April 17, 2013)


-In October 2013, the Company announced that the cumulative production of automotive modules exceeded the 100 million units. Since the company started car module production in 1999, Hyundai Mobis has produced 43.59 million chassis module units, 38.46 million units of cockpit modules and 17.95 million units of front-end modules. Single-year production for 2013 will be: 6 million units for chassis modules, 7 million units for cockpit modules, and 3.8 million units for front-end modules. Currently, Hyundai Mobis has five module production sites in Korea and 11 sites outside Korea. (From a press release, October 31, 2013)

-In September 2013, the Company announced that it has produced an aggregate total of 50 million airbags since it began producing them in 2002. In 2009, the company transferred its airbag production base from Cheonan, Chungcheongnam-do to a larger facility in Gimcheon, Gyeongsangbuk-do in order to meet growing demand for the safety products. The Gimcheon facility now has the capacity to produce 10 million airbags per year, which include driver-side airbags, passenger-side airbags, side airbags, curtain airbags and knee airbags. (From a press release, September 27, 2013)

-The Company said it has delivered 1 millionth complete chassis module for the Chrysler Jeep Wrangler on May 17, 2013. A complete chassis module is made up of major auto parts such as a chassis frame, engine, transmission, brake and a steering system. Hyundai Mobis has been producing the module product at its Ohio Plant in the U.S. since 2006. The company, which currently generates about 10 percent of its sales through business with non-Korean OEMs, is aiming to increase the percentage to 20 percent by 2012. (From a press release, May 28, 2013)


-In October 2013, the Company acquired the ISO26262 standards for its air bag control units. ISO26262 is a functional safety standard for automotive electronic systems. The company obtained this certification also for the application software of its smart cruise control (SCC) systems and lane keeping assists systems (LKAS) in December 2012. (From a press release, October 17, 2013)

-In April 2013, the Company received the Collaborative Production Award from Fuji Heavy Industries Ltd. The company has been supplying rear lamps and fog lamps for Subaru vehicles. (From a press release, May 1, 2013)


R&D Structure

Facility Location
Yong-in R&D Center Yong-in,
Uiwang R&D Center Uiwang,
Shanghai R&D Center Shanghai,
Detroit R&D Center Detroit,
Frankfurt R&D Center Frankfurt,
India R&D Center Hyderabad,

R&D Expenditure

(in millions of won)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Amount 424,054 357,863 326,108
% of sales 1.2% 1.2% 1.2%

R&D Structure

-The Company will invest approximately KRW 275 billion to establish a proving ground in Seosan City, Chungcheongnam-do. The construction work will begin in the first half of 2014 and is expected to be completed by the end of December 2016. (From a press release on December 16, 2013)

-In October 2013, the Company announced that its new research building was completed on the premises of its technical research center in Yong-in. Engineers at the facility will specialize in the research and development of major components for environmentally-friendly vehicles and electronic devices for intelligent vehicles. The company invested more than KRW 60 billion in the new building, which has a floor area of 71,000 square meters. In line with its plan to invest KRW 1.8 trillion in R&D activities through 2015, the company will increase the number of engineers in Korea from 1,800 to 2,300 by 2015. (From a press release, October 17, 2013)

R&D Activities

-The Company developed a 1-megapixel integrated image recognition camera, the first of its kind to be developed in Korea. The camera recognizes a vehicle's front images to support Lane Departure Warning Systems (LDWSs), High Beam Assist (HBA) Systems, Lane Keeping Assist Systems (LKASs) and Frontal Collision Warning (FCW) systems. The new camera is 20 percent smaller than existing cameras. (From a press release on November 7, 2013)

-The Company developed and launched mass production of major components used in hydrogen-powered fuel cell vehicles (FCEVs). The products, which include drive motors, fuel cell modules, lithium-ion battery packs and electronic components, will be produced at the company's Chungju facility for installation on the Hyundai Motor Tucson ix FCEV. The drive motor can deliver up to 134 horsepower, offering speeds up to 160 kilometers per hour. The fuel cell module is powerful enough to generate up to 100kW. (From a press release, March 6, 2013)

-The Company and Fintex E&E, Inc. have jointly developed fiber materials for bent caps used in automotive lamps, becoming the first companies in Korea to succeed in such a development project. Fintex E&E will supply the new fiber materials to Woo Chang Industrial, a Korea-based lamp manufacturer supplying its products to Hyundai Mobis. (From a press release, February 7, 2013)

-In January 2013, the Company successfully developed the AILS(Active Intelligent Lighting System), a lighting technology with a function to adjust the illuminating angles and levels automatically in accordance with the information of the car navigation system. Based on the road information of the navigation device, the AILS predicts the drive route of the vehicle and starts adjusting the headlight angle 40 to 100 meters before the vehicle enters an intersection or a curve to improve the driver's vision. Since drivers' vision is likely to drop as much as 50 percent in nighttime driving, the technology is designed to minimize blind area and dead angle near hazardous areas as early as possible. (From a press release, January 9, 2013)

Technological Alliance

-In January 2013, the Company signed an agreement with Wind River Systems Inc., a California-based software development company, to collaborate in the area of in-vehicle infotainment systems. Based on the arrangements, Wind River will provide technology to develop software platform to Hyundai Mobis, while offering support in developing and mass-producing in-vehicle infotainment systems. Wind River is a subsidiary of Intel Corporation. (From a press release, January 22, 2013)

Investment Activities

Capital Expenditure

(in millions of won, in thousands of USD)
Planned amount of investment Amount
383,233 341,749
USD 299,649 USD 297,082
Total 697,865 665,659

Investment in Korea

-In March 2013, the Company completed construction of a new plant in Chungju, Chungcheongbuk-do and started production of green vehicle components at the facility. The company set up this plant (26,000-square-meters in building area) to expand its operations now conducted at its existing facility in Uiwang, Gyeonggi-do, which is one fourth in size. The new plant has production lines to manufacture electric motors, inverters, converters, and lithium-ion battery modules. These components will be used on the Avante and the Sonata hybrids built by Hyundai, the Forte and the K5 hybrids by Kia, the Ray EV by Kia, and the Tucson ix hydrogen fuel cell vehicles by Hyundai. The Chungju plant also accommodates lithium-ion battery pack production lines operated by HL Green Power, Hyundai Mobis' joint venture with LG Chem. While bolstering strong ties with the battery supplier, Hyundai Mobis is looking to integrate production operations for environmentally friendly vehicles. (From a press release, March 22, 2013)

-In July 2013, the Company announced that it will acquire land in Chungju, Chungcheongbuk-Do. It will purchase it from HL Green Power Co., which now owns the property, for 10,634 million won. HL Green Power is a joint venture between Hyundai Mobis and LG Chem. It produces secondary batteries for automobiles. (From a press release, July 26, 2013)

Investment outside Korea

-Its Turkey subsidiary Mobis Automotive and Module Industry Trade Co. completed construction of a new module plant in Izmit, Kocaeli Province and started production of chassis modules, cockpit modules, and front-end modules for Hyundai i10 and i20. The Company invested 3.3 million dollars for this plant. The plant is expected to produce 200,000 modules per year. Its land size of the new plant is about 36,000 square meters, and total floor area plus office building and warehouse production factory are about 13,000 square meters. (From a press release, September 9, 2013)