Hyundai Mobis Co., Ltd. Business Report FY ended Dec. 2016
Financial Overview (Consolidated) |
(in billions of won) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | Rate of change (%) |
Remarks | |
| Sales | 38,261.7 | 36,019.7 | 6.2 | -Sales increased year-over-year (y/y) thanks to extended model lineup of SUVs and other vehicles in and outside Korea, as well as strong sales of aftermarket products. Operating profit decreased y/y due to considerable costs incurred for new facilities and increased costs for quality control. -In FY2016, sales of module products reached KRW 31,574.8 billion won, which accounted for 82.5% of the Company's overall revenues. |
| Operating income | 2,904.6 | 2,934.5 | (1.0) | - |
| Net income | 3,047.2 | 3,040.0 | 0.2 | - |
Recent Development in Korea
Mass-production of Integrated Body Units (IBUs)
-The Company developed an Integrated Body Unit (IBU), becoming the first company to achieve this in Korea. Mass-production of this product began at the Company's plant in Jincheon in March 2017. The IBU integrates control of four systems: a body control module; a smart key system; a tire-pressure monitoring system; and a parking assist system. Hyundai Mobis also developed Automotive Open System Architecture (AUTOSAR)-based IBUs, and plans to start mass-producing these products by around June 2017. Currently, the Company is working on over 20 projects to develop AUTOSAR-based electrical components. (From a press release on March 22, 2017)
Recent Development Outside Korea
-Mobis North America, LLC (MNA), the Company's subsidiary in the U.S., announced that its cumulative module production volume has reached 3.6 million as of the end of June 2016, and the number is expected to reach 4 million near the end of this year. MNA produces modules at its Ohio and Michigan Plants. The Ohio Plant has the capacity to produce 246,000 modules per year, and manufactures complete chassis modules for Chrysler's Jeep Wrangler. The Michigan Plant has the capacity to produce 360,000 modules per year, and supplies front and rear chassis modules for Chrysler's Jeep Grand Cherokee and Dodge Durango. (From a press release on July 13, 2016)
Contracts
-The Company was awarded a KRW 22 billion contract to supply integrated center stacks (ICSs) to the PSA Group. These ICSs will be produced at Hyundai Mobis' Tianjin Plant, and will be delivered to PSA's plants in France. The products will be used on new Peugeot models that will be mass-produced starting in 2017. (From a press release on August 19, 2015)
R&D Structure
| Facility | Location |
| Mabuk R&D Center | Yong-in, Gyeonggi-do, Korea |
| Uiwang R&D Center | Uiwang, Gyeonggi-do, Korea |
| Shanghai R&D Center | Shanghai, China |
| Detroit R&D Center | Detroit, China |
| Frankfurt R&D Center | Frankfurt, Germany |
| India R&D Center | Hyderabad, India |
R&D Expenditure |
(in millions of won) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | |
| Amount | 695,683 | 623,169 | 492,700 |
| % of sales | 1.8% | 1.7% | 1.4% |
R&D Activities
Consumer Electronics Show (CES) 2017
-The Company will exhibit its new technologies at the Consumer Electronics Show (CES) that will be held in Las Vegas, U.S. in January 2017. Based on theme, "Facing the Future with Mobis Technology", the Company's exhibition booth will consist of three zones, "Smart Car", "Green Car", and "Parts Zone." The "Smart Car" zone will demonstrate features like safety and convenience with an autonomous driving simulator. The "Green Car" zone will introduce the driving mechanisms and key parts of Mobis's hydrogen fuel cell vehicles. The "Parts Zone" will feature a wide variety of technologies that are soon to be mass-produced or are already in series production, including the Driver Assist Systems (DAS), the Audio Video Navigation (AVN) systems, lighting systems, brakes, and steering parts. The company will actively promote its technologies at the show, aiming to win new business opportunities. This will be the second time that Hyundai Mobis participates in the CES, following its exhibition in 2016. (From a press release on December 22, 2016)
Autonomous Driving Technology
-The Company is developing major module products (chassis modules, cockpit modules, front-end modules) as well as core components for airbags, brake systems, lamps, multimedia products, and electric devices. It is also developing components for hybrid vehicles, electric vehicles, connected vehicles, and autonomous drive technologies. Development activities for autonomous vehicles are conducted jointly with R&D centers in Europe, North America, and India. (From the Company's annual report for 2016)
-The Company announced that it has been granted the Ministry of Land, Infrastructure and Transport's permission to test its self-driving car technologies on real roads, becoming the first Korean auto parts manufacturer that gained such approval. The Company said it has received a special license and an identification plate for a Hyundai Sonata test car installed with the Company's autonomous drive system, which is under development. The vehicle is equipped with MicroAutobox, radars, and a front camera, and will be tested on public roads that stretch a total of 320 kilometers designated by the ministry. Hyundai Mobis is aiming to start mass-producing autonomous drive technologies in 2020 onwards. (From a press release on June 9, 2016)
Product Development
-The Company announced that it has developed an electronic parking brake for large pickup trucks (eDIH: electronic Drum in Hat). The new parking brake is 30% smaller than existing mechanical parking brakes, while offering 1.5 times larger braking force. The Company achieved this significant downsizing by integrating some components into an all-in-one unit. Hyundai Mobis is aiming to mass-produce eDIH as soon as possible, targeting the North American market where it expects to establish a stronger presence. (From a press release on August 29, 2016)
-The Company announced that it has developed iMEB (Integrated Mobis Electronic Brake), an integrated regenerative brake system for environmentally friendly vehicles. The iMEB integrates the pressure supply unit and the pressure control unit of the regenerative brake system into a single electronically driven type system. This allows for more than a 30% reduction in both cost and weight. In addition, cutting-edge brake functionality, such as ESC (Electronic Stability Control), ABS (Anti-lock Brake System), SCC (Smart Cruise Control), and AEB (Autonomous Emergency Braking) are also integrated. (From a press release on November 22, 2015)
Technological Alliance
-NXP Semiconductors and the Company announced the successful completion of field trials of MOBIS DRM receivers and NXP chips designed in India. The chips and DRM receivers are now deployed in DRM-fitted car infotainment receivers in a newly launched vehicle in India by a leading OEM. NXP R&D center in India has played a pivotal role in developing the chip (SATURN - SAF360X) and software for this technology. Developed by a regional collaboration between All India Radio, NXP Semiconductors, Hyundai Mobis, and the DRM Consortium, the development and deployment, showcased at a DRM Round Table conference on January 31. DRM, an innovative digital radio standard provides FM-comparable, or better audio quality on the AM radio band. DRM significantly improves radio coverage and quality. This technology is affordable and provides additional data services such as traffic updates, natural disaster warnings and news. All India Radio is about to complete the nationwide installations of the DRM transmitters, and the availability of DRM receivers in automobile vehicles will pave the way for more companies to roll out DRM receivers. (From a press release on February 2, 2017)
Capital Expenditure |
(in billions of won) |
| Projects | Purpose of investment | FY ended Dec. 31, 2016 | FY ending Dec. 31, 2017 (Planned) |
|
| Korea |
New plant construction, complementary investments | Facility improvements to improve capacity utilization rates | 584.8 | 661.7 |
| Overseas |
714.5 | 526.7 | ||
| Total | - | - | 1,299.3 | 1,188.4 |
Investment outside Korea
-The Company announced that it will establish a new plant in the Chongqing Liangjiang New Area in China. The company plans to spend USD 250 million in the first phase of this project. Construction will begin at the end of June 2015 and is scheduled to be completed in March 2017. The plant is expected to generate approximately USD 1,200 million in sales per year. (From news releases issued by multiple sources on June 23, 2015)