- $120 Million Investment to Boost Sales in the US
Hyundai Mobis has opened its factory in the United States, taking a giant step toward becoming one of the most respected brands in the world's No.1 automobile market.
The plant, built on a 660,000-square-meter area in Montgomery, Ala., will provide quicker and improved auto parts service for Hyundai Motor in the U.S., where the carmaker has recorded robust sales.
Mobis will produce key parts for Hyundai Motor's Sonata sedan that has rolled off the assembly lines since April from its Montgomery plant, located near the Hyundai Motor factory.
Mobis invested $120 million to set up the plant, which will produce a wide range of parts, including chassis and cockpit modules, bumpers and door trims.
The firm said the Alabama plant demonstrates what Mobis has achieved in terms of technologies since it began its parts service in 1977 as a subsidiary of Hyundai Group.
Mobis introduced the so-called just-in-sequence production method for assembly lines to help manufacturing workers do their jobs more quickly and more efficiently than previously. All material flows in the factory are completely automated.
This is a very important step for both Hyundai Mobis and the Korean automobile industry, CEO Park Jeong-in said.
We hope the plant will play a significant role for Hyundai Automotive Group in attaining its goal of becoming an auto powerhouse in the U.S. We see good signs out there.
Based on its achievements in Alabama, Mobis aims to expand investment to build a strong auto supply and after-sales network in the North American market.
Auto parts produced in the U.S. plant will be distributed throughout the country, enabling American end-users to receive service more quickly and more efficiently.
Mobis now produces items only for the Sonata, but will expand lines in the future to support sales of all models produced by Hyundai Motor in Montgomery. When Hyundai Motor begins production of Santa Fe sports utility vehicle next year, lines will be added to meet its demands.
At full capacity, the plant will be able to supply auto parts for 300,000 cars annually.
As Hyundai Motor extended its reach in the global market, Mobis followed in their footsteps to support its sales. It has established module factories in Beijing and Shanghai and also plans to build ones in Slovakia in 2006 and in India in 2007.
With the Montgomery plant, Hyundai Motor seeks to increase sales in the U.S. to 500,000 units this year, capturing about 3 percent of the market.
Considering sales of Kia Motors, a Hyundai Motor affiliate that has made strong growth in the small car segment, the group’s share may grow to over 4.5 percent this year.
The largest Korean automaker believes the vehicles made in the U.S. will provide leverage for the company to more effectively compete with its bigger U.S. and Japanese rivals in the world’s most competitive market.