Hyundai Mobis Co., Ltd. Business Report FY ended Dec. 2014

Business Highlights

Highlights in FY2014 (FY ended Dec. 31, 2014)

Financial Overview (Consolidated)

(in billions of won)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of
change (%)
Sales 36,184.9 34,198.5 5.8 -The Company attributes the strong overseas sales to its greater production volume in Brazil, increased sales to Chrysler in the Americas, strong sales of SUVs in both Europe and China, and mass production launch in Turkey.

-Sales at the Module Division stood at 28,863.7 billion won, which accounted for 79.8 percent of the Company's overall revenue.
Operating income 3,070.5 2,924.4 5.0 -
Net income 3,392.5 3,396.4 (0.1) -


-The Company's Gwangju Plant will produce front-end modules and cockpit modules for Kia Motors' Soul EV, starting in April 2014. In addition, production of instrument panels that is currently conducted at the Cheonan Plant will be partially transferred to the Gwangju Plant in August 2014. (From a press release on January 6, 2014)


-The Company announced that the radio frequency anechoic chamber at its research center has been recognized as an internationally certified testing agency. The recognition was given by the Korea Laboratory Accreditation Scheme (KOLAS) under the Korean Agency for Technology and Standards, the Korean Ministry of Trade, Industry & Energy. The radio frequency anechoic chamber performs testing in the following areas: telematics technology; audio, video and navigation (AVN) systems; ECUs; smart key systems; and sensors. (From a press release on January 8, 2014)


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, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Amount 492,700 424,054 357,863
% of sales 1.4% 1.2% 1.2%

R&D Structure

-The Company announced that it has completed a winter road test course in Heihe, Heilongjiang. The proving ground, which covers 3 million square meters, will perform testing of the company’s latest technologies such as the Mobis Electronic Brake (MEB) systems and the Smart Parking Assistance Systems (SPASs). The testing results will be shared with the Hyundai Mobis Shanghai R&D center and Wuxi Mobis Automotive Autoparts, the company's production affiliate. These facilities will use the analysis results to develop new products and technologies. (From a press release on February 11, 2014)

R&D Activities

-The Company announced that it has developed a new battery management system (BMS) for electric vehicles. The new BMS uses only 4 communication wires, in contrast to conventional BMSs that require approximately 100 high voltage wires. The new BMS, which is very simple in design, offers a significant reduction in product weight and a considerable improvement in accuracy levels. In addition, it allows use of standardized major components, which will make it easy to use the BMS on a variety of vehicles. Adoption of the new BMS is expected to shorten the time needed for vehicle development. Hyundai Mobis aims to commercialize this BMS within the next two years. (From a press release on October 29, 2014)

-The Company  and NXP Semiconductors Korea Ltd. have jointly developed a next-generation car radio platform. The platform uses NXP's SAF775x digital signal processing (DSP) technology and SAF360 software-defined radio (SDR) co-processor. The new platform can reduce overall production cost, while offering improved audio and sound performances. (From a press release on September 18, 2014)

Investment Activities

Capital Expenditure

(in billions of won)
FY ended Dec. 31, 2014 FY ending Dec. 31, 2015
793.5 3,263.6
337.9 894.5
Total 1,131.4 4,158.1

Investment in Korea

-The Company  will acquire HL Green Power's plant in Chungju, Chungcheongbuk-do by the end of November 2014. HL Green Power is Hyundai Mobis' joint venture with LG Chem. It produces rechargeable batteries for automobiles. Hyundai Mobis will pay KRW 13,630 million for the deal. (From a press release on October 24, 2014)

-The Company  announced that a consortium of companies including Hyundai Motor, Kia Motors and Hyundai Mobis has won a bid to acquire the building and land of Korea Electric Power Corporation's headquarters in Seoul for KRW 10.55 trillion. The Hyundai Group intends to utilize this office as its "integrated control tower". (From a press release on September 18, 2014)

Investment outside Korea

-The Company has signed an agreement with the state of Nuevo Leon, Mexico to build a plant in Pesqueria in the suburbs of Monterrey. The company intends to invest approximately KRW 450 billion in this project, planning to complete the construction by the end of 2016. The Mexican facility will produce module products and other automotive parts for North and South America. (From a press release on January 16, 2015)

<Czech Republic>
-The Company  unveiled a plan to build a plant to produce lamps in Czech. Approx. EUR 95.6 million (KRW 120 billion) will be invested by 2017 to construct a 430,000-square-meter plant on a site of 180,000 square meters near Ostrava, Czech. The plant will have a capacity to produce lamps for 750,000 vehicles. Headlamps and rear lamps will be supplied from the factory to Hyundai’s plant in Czech and Kia’s plant in Slovakia. (From a press release on July 27, 2014)