Hyundai WIA Corporation (Formerly WIA Corporation) Business Report up until FY ended Dec. 2013

Business Highlights

Highlights in Recent Years

Financial Overview (Consolidated)

(in millions of won)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of
Change (%)
Remarks
Sales 7,091,993 7,021,086 1.0 -Sales at the automotive division totaled 5,745,156 million won, which made up 81.0 percent of the overall sales.
Operating income 529,239 539,693 (1.9) -
Net income 425,007 424,563 0.1 -

Joint Venture

-In August 2013, the Company and IHI of Japan have jointly established Hyundai WIA IHI Turbo Co., Ltd. in Korea. The two companies are investing approximately 37 billion won in the turbocharger production joint-venture in Seosan, Chungcheongnam-do. Approximately 15 billion won will be spent by the end of 2014 to construct a plant on about 9,900 square meters. Mass production is scheduled to start in 2015. Through this new joint venture, IHI will transfer production technologies related to turbine wheels, shafts, compressor wheels and other products to Hyundai WIA by 2016. This will allow the Korean facility to manufacture all turbocharger components on its own. If Hyundai WIA's turbocharger production capacity reaches 1 million units per year by 2020, it will be able to save approximately 30 billion won per year by replacing imports with new products made in Korea. (From a press release, August 8, 2013)

-WIA Magna Powertrain Co. established a new plant in Asan City, Chungcheongnam-do. The new facility, which will produce electronic control couplings for four-wheel-drive vehicles, will initially supply them to all SUV models manufactured by both Hyundai Motor and Kia Motors, including the Hyundai Tuscon, the Kia Sportage and the Kia Sorento. The company aims to raise the plant's annual production capacity to 500,000 units by 2013. WIA Magna Powertrain was established in January 2009 as a 50-50 joint venture between Hyundai WIA of Korea and Magna Powertrain headquartered in Austria. (From a press release on May 25, 2010)

-WIA of Korea and Magna Powertrain AG of Austria will establish a 50-50 joint-venture company in Asan, Chungcheongnam-Do, Korea to produce and supply electronic couplings for use in all-wheel-drive (AWD) vehicles. The new company, WIA Magna Powertrain, is capitalized at 11 million US dollars. Construction of the plant will begin in March 2009. (From a press release on Jan. 24, 2009)

Highlights by Product

Dual Clutch Transmission (DCT)
-In June 2011, the Company started mass production of DCTs at its Changwon #2 plant.
-In June 2011, the Company started supplying DCTs for the Hyundai Veloster (FS).

Electronically controlled transfer
-Through a joint investment with Magna Powertrain AG, the Company entered into the electronically controlled transfer business.
-The JV will start to supply the transfers for the successor model of the Hyundai Genesis (DH) in 2013.

Reduction gear
-The Company entered into the reduction gear business for fuel cell and electric vehicles.
-The Company started supplying reduction gears for the Hyundai Atos EV in 2011.

Transmission
-The Company supplies transmission systems for recreational vehicles such as the Kia Sorento and the Hyundai Santa Fe as well as for trucks and buses built by Hyundai and Kia.
-The Company has been manufacturing transmission systems for use in the Kia Spectra and Rio since 2005; these products had been manufactured in-house at Kia until then.
-In March 2009, the Company started producing manual transmissions for the Kia Sorento R.
-In May 2011, the Company started supplying automatic transmissions for the Kia Pride (UB).

-The Company won a contract to supply manual transmissions to Shanghai Huizhong, a commercial vehicle manufacturer in the Shanghai Automotive Group. The transmissions will be supplied to 2500cc minivans being manufactured at Shanghai Huizhong's Wuxi Plant in Jiangsu Province. Over the next 10 years, Hyundai WIA will supply 232,000 manual transmission systems which will be worth 150 billion won in sales. (From a press release on Jun. 2, 2010)

Constant Velocity Joint (CVJ)
-In January 2008, mass production of CVJs started at a new plant in Jiangsu, China.
-Since 2010, the Company has been supplying Constant Velocity Joints for the Hyundai Genesis.
-In December 2010, the Company produced its 20 millionth CVJ.
-In April 2011, the Company started mass producing CVJs at its new plant in India.
-In June 2013, the Company produced its 30 millionth CVJ.

Engine
-The Company launched its engine manufacturing business in 2005 by establishing new plants to make engines in Pyeongtaek City, Gyeonggi-do.
-In 2005, the Company started manufacturing engines for the Spectra and Rio of Kia Motors, which had been previously produced in-house at Kia.
-In 2006, the Company established a new plant in Shangdong Province, China. The facility started producing the Alpha engines in 2007, the Gamma engines in 2009, and the Beta engines in 2011.
-The Company started mass producing the Kappa engines for the Kia Morning in January 2011.

Axle

-Since Dec. 2007, the Company has been supplying front and rear axles for the Kia Mohave large SUVs.
-In March 2009, the Company was awarded a contract to supply front and rear axles for the Kia Sorento R. Preparations are underway for launching mass production of these products.

Chassis module
-The Company launched its automotive module business in 2004 by manufacturing chassis modules for the Sportage built by Kia Motors.
-In the first half of 2005, the Company started commercial production of chassis modules for the Pride assembled by Kia Motors.
-In the second half of 2005, the Company began commercial production of chassis modules for the Grand Carnival made by Kia Motors.
-In April 2006, the Company started commercial production of platform modules for the Kia Carens ; these modules are being manufactured at the Gwangju Plant.
-In September 2008, the Company started supplying chassis modules for the Kia Soul.
-In May 2009, the Company started mass production of chassis modules for the Kia Opirus.
-In June 2009, the Company started mass production of chassis modules for the Kia Sorento R.
-The Company was awarded a contract to supply chassis modules for the Kia Sportage R, mass production of which started in March 2010.
-In May 2011, the Company started supplying chassis modules for the Pride (UB).
-In Apr. 2012, the Company started supplying chassis modules for the K9 (KH).

Tire module
-In March 2005, the Company began supplying tire modules for both the Pride and the Grand Carnival assembled at Kia's Sohari Plant.
-In September 2006, the Company started supplying tire modules for the Lotze, Opirus and Cerato assembled at Kia's Hwaseong Plant.

Platform module
-In April 2006, the Company started producing platform modules (chassis modules with an engine) for the Kia Carnens.
-In February 2009, the Company started manufacturing platform modules for the Kia Soul.

 

Divestiture

-EcoPlastic Corporation will acquire 100.0 percent shares of AIA Corporation from Hyundai WIA Corporation. EcoPlastic will spend 14 billion won for the deal, making AIA its wholly-owned subsidiary. Based in Ansan, Gyeonggi-do, AIA manufactures anti-vibration products including engine mounts and transmission mounts, rubber products including weather strips and hoses, and plastic products including bumpers. (From a press release on December 31, 2010)

R&D

R&D Structure

Facility Location
Korea
Automotive Parts Research Institute Uiwang,
Gyeonggi-do
Hwaseong Drivetrain R&D Center Hwaseong,
Gyeonggi-do
USA
Hyundai WIA America Technical Center Farmington Hills,
Michigan

-In January 2007, the Company, Dymos, and Hyundai Powertech jointly established Hwaseong Drivetrain R&D Center in Hwaseong, Korea. Dymos and Hyundai Powertech are members of the Hyundai Motor Group.

-In October 2008, the Hyundai Motor Group held a ceremony to celebrate the completion of its new research center in Uiwang City, Gyeonggi-do. The company invested a total of 160 billion won to build the 15-story research center building, which has three underground levels and is built on approximately 80,000 square meters of land. The new facility will house R&D functions of five Hyundai group companies, namely, Hyundai Motor Company, Hyundai Autonet, Hyundai Rotem, WIA, and Autoever Systems. Major research facilities will include the plastic research center of Hyundai Motor, the electronics research center of Hyundai Autonet, and the auto parts research center of WIA. (Form a press release on Oct. 21, 2008)

-In May 2012, the Company signed an industry-academia collaboration agreement with the School of Mechanical and Aerospace Engineering of Seoul National University. Both will work together on fundamental technology aimed at improving the quality of automotive parts and enhancing productivity. (From a May 11, 2012 press release)

R&D Expenditure (Consolidated)

( in millions of won )
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Amount 53,901 37,657 31,022
% of Sales 0.8 0.5 0.5

R&D Activities

-In January 2012, the Company announced that it will develop a core module for hybrid vehicles. Hyundai WIA will become the first company in Korea to start the development of an electric drive module, which is used on rear wheels of SUV hybrid vehicles. This development project, which is included in Korean government's strategic programs, is scheduled to be completed by 2015. Hyundai WIA, together with the government and other related organizations, will invest approximately 11.2 billion won in this project over the next four years. The company also plans to work jointly with small and medium-sized companies and universities on the project. After completing the development of the core module for SUV, Hyundai WIA plans to develop an electric drive module for luxury passenger vehicles. (From a press release on January 25, 2012)

R&D Achievements

Product Research bodies Areas of development/achievements
Modules & Axles
Kia/Sportage R
Chassis modules
-The Company
-Kia Motors
-Other cooperative business
-Developed front/rear chassis modules and corner modules
Kia/Pride
Chassis modules
-The Company
-Kia Motors
-Other cooperative business
-Developed front/rear chassis modules and corner modules
Kia/Carnival
Chassis modules
-The Company
-Kia Motors
-Other cooperative business
-Developed front/rear chassis modules and corner modules
Kia/Carens
Chassis modules
-The Company
-Kia Motors
-Other cooperative business
-Developed front platform modules, rear chassis modules, and corner modules
Kia/Soul
Chassis modules
-The Company
-Kia Motors
-Other cooperative business
-Developing front platform modules, rear chassis modules, and corner modules
Kia/Morning
Axle modules
-The Company
-Kia Motors
-Other cooperative business
-Developed front/rear axles
Kia/Sorento
Axle modules
-The Company
-Kia Motors
-Other cooperative business
-Developed front/rear axles
Kia/Mohave
Axle modules
-The Company
-Kia Motors
-Other cooperative business
-Developed front/rear axles
Axles modules for 1 ton trucks -The Company
-Kia Motors
-Other cooperative business
-Developed front/rear axles
Vehicle components
Electronic transfers -The Company
-Technical partner (non-Korean)
-Manufacturing and assessing new products
Power transfer units (PTUs) -The Company -Conducting reliability testing (for the successor to the Hyundai Santa Fe)
-Already started mass-production for the Hyundai Tucson ix, the Kia Sportage R, and the Kia Sorento R 

6-speed manual transmissions for RWD passenger vehicles

-The Company
-Hyundai Motor

-Preparing for starting mass production for the Hyundai Genesis Coupe 

6-speed automatic transmissions for FWD SUVs -The Company
-Hyundai Motor
-Preparing for starting mass production for the successor to the Hyundai Santa Fe
Electronically controlled couplings for all-wheel-drive vehicles -The Company
-Magna
-Development project completed
-Mass production already started for the Kia Sportage and the Hyundai Tucson
Reduction gears for fuel-cell vehicles -The Company
-Hyundai Motor
-Chosen as a developer of the product by Hyundai and Kia
-Developed 80kw-class/100kw-class reduction gears for sport utility vehicles
Electronic Power Steering
(EPS) systems
-The Company
-Korea Automotive Technology Institute
-BaekDoo Electronics
-Manufactured prototypes of EPS electronic control units, with an aim to launch domestic production of these systems
-Installed C-EPS on the Kia Rio and evaluated  the system
Power shifts -The Company
-Kia Motor
-Designed and developed power shifting gears in-house, and turned this new technology into a practical business solution
-These new products will replace imported parts, contributing to more than a 3 billion won reduction in procurement costs 
Hollow drive shafts
(Swaging method)
-The Company
-Hyundai WISCO
-Completed prototype development and assessment
-Mass production of the product started for the Hyundai Genesis and the Kia K9
Hollow drive shafts
(Friction welding method)
-The Company
-Central DTS
-Completed prototype development and assessment
-Mass production of the product started for the Hyundai i30, the Hyundai Avante and the Kia Pro-cee'd
Thermoplastic elastomer (TPE) boots -The Company
-Kwangduk A&T
-Developed TPE boots that can withstand heat up to 150 degrees Celsius
High bending angle ball joints -Hyundai WIA America Technical Center -Manufacturing prototypes of ball joints with a larger bending angle of more than 50 degrees (the largest bending angle of current technology is 46.5 degrees)
High-efficiency ball joints -Hyundai WIA America Technical Center -Development project completed
Low-vibration tripod joints -The Company -Development project completed
-Mass production of the product started for the Hyundai HB20 and the Hyundai Genesis
Low cost ball joints and tripod joints -The Company -Development project completed
-Mass production of the product started for the Hyundai Tucson and the Kia Sportage facelift model
Lightweight ball joints and tripod joints -The Company -Development project completed
-Mass production of the product started for the Kia K3

Technical Tie-ups

Partner
(Country)
Areas of alliance Term
Bishop
(Australia)
Technology on vehicles using slotting technology Jul. 2000 -
Apr. 2012
Fuji Univance
(Japan)
Technology on electronic control transfers for front-engine, rear-drive-wheel vehicles Jun. 2005 -
Jun. 2012
Wanxiang
(China)
Licensing technology on CVTs Jan. 2007 -
Dec. 2011

Investment Activities

Investment in Korea

-In December 2012, the Company announced that it will establish a new plant in Seosan, Chungcheongnam-do to produce powertrain components. The project, which will involve an investment of approximately 600 billion won, is expected to be completed by 2015. The company is going to continue investing in this plant for further expansion by 2020. (From a press release, December 12, 2012)

Investment in other countries

In December 2013, the Company announced that Hyundai WIA India Pvt. Ltd., its Indian subsidiary, has completed a new plant in Chennai, Tamil Nadu. The facility will produce constant-velocity joints not only for automakers in India but also for those operating in Russia and Turkey. (From a press release on December 14, 2013)

Recent Capital Investment Projects/Automotive Parts

(in billions of won)
Amount invested
(FY ended Dec. 31, 2013)
Planned amount of investment Total Purpose of
investment
Automotive parts 108.2 223.6 331.8 -Preparing production lines to manufacture components for new vehicle models and developing new technologies

Planned Investment Projects/Automotive Parts

(in billions of won)
Planned amount of total investment FY ending Dec. 31, 2014 FY ending Dec. 31, 2015 Purpose of
investment
Automotive parts 220.5 168.3 52.2 -Preparing production lines to manufacture components for new vehicle models and developing new technologies
-Establishing new plant