Hyundai Mobis will supply core modules for electric vehicles to Mercedes-Benz, the leading premium automotive brand in Europe. This marks the second overseas order for large-scale modules, following a similar deal with Chrysler in the USA, showcasing Hyundai Mobis’ module system technology and quality competitiveness recognized in the global market built over 20 years.
To facilitate this chassis module supply, Hyundai Mobis has established a factory in McCalla, Alabama, near the Mercedes-Benz facility, starting mass production in the third quarter of this year. This becomes the fifth production base in the USA, following factories in Alabama and Georgia that supply modules to Hyundai and Kia, as well as the Michigan and Ohio factories supplying modules to Chrysler.
The chassis refers to the collective components such as steering, braking, and suspension assembled at the lower part of the vehicle; the chassis module is a large assembly of these components centered around a frame. They are categorized into front and rear chassis based on their installation location. The chassis module is considered a key system determining the vehicle’s driving stability.
The vehicles for which Hyundai Mobis is supplying chassis modules are pure electric vehicle models. The Hyundai Mobis chassis modules will be installed in four SUV models that feature dedicated electric vehicle platforms. Hyundai Mobis plans to sequentially supply front and rear chassis modules according to the production schedule of these models and has established facilities in the newly built Alabama plant to produce chassis modules for the four models simultaneously.
This module supply is significant as it acknowledges Hyundai Mobis’ module technology and quality accumulated over more than 20 years by a world-class premium automotive brand. Throughout the module order process, Hyundai Mobis held several technical briefings and directly demonstrated the mass production system of its modules. It is reported that Mercedes-Benz representatives highly valued Hyundai Mobis’ production technology, management capabilities, and quality control capacities during a thorough verification process of the module supply capabilities.
Hyundai Mobis declared its ascent as a comprehensive automotive parts company in 1999 and commenced development of chassis modules. Since then, it has produced all three core modules entering vehicles, including driver’s seat modules and front-end modules (integrating air conditioning, lighting, and bumper systems). Currently, Hyundai Mobis operates a total of 28 module factories, including 8 in Korea and 20 overseas.
This is not the first instance of Hyundai Mobis supplying its module system to overseas automakers. Since 2006, Hyundai Mobis has been supplying chassis modules to the American automotive brand Chrysler, gaining recognition for its module technology and quality excellence in the fiercely competitive North American automotive market.
With the supply of key vehicle modules to Mercedes-Benz, following Chrysler in the USA, Hyundai Mobis is expected to expand its opportunities for orders from global automakers. Hyundai Mobis currently supplies essential components such as electronic assemblies, lamps, and sound systems to global automakers, including GM, Stellantis, Volkswagen, and Geely.
To enhance overseas orders, Hyundai Mobis has been strengthening customer-oriented sales by recruiting local experts at the executive level since the second half of last year. Based on these local sales and order efforts, Hyundai Mobis has achieved 70% of its annual overseas order target (USD 3.75 billion) by the first half of this year.
Choi Sung-hwan, President of Hyundai Mobis, stated, “Due to the nature of the module business, once a supply system is established, it can maintain long-term partnerships. We aim to increase trust with our customers based on excellent technology and reliable supply capabilities to secure more order opportunities.”
Lee Sang-jin daedusj@autodiary.kr