MOBIS sales target \26 trillion to become a global top 10
Hyundai MOBIS 2011/02/26프린트
- \1.15 trillion in investments to gain global competitiveness, \360 billion in R&D
- Announced Three Business Policies: improvement of key competencies for future growth, advancement of global business and continued fundamental reinforcement of growth engine
- Take global top 10 spot by diversifying sales market – BRICS and MAVINS countries
MOBIS target sales at \14 trillion in Korea and \12 trillion abroad for a total of \26 trillion (up by 23.8 percent compared to last year’s plan); become one of the Global Top 10 manufacturers
Along with a business plan for each of the divisions which includes the target of \26 trillion in total sales, MOBIS has announced the Three Business Policies, namely: improvement of key competencies for future growth, advancement of global business and continued fundamental reinforcement of growth engine.
After adopting the current company name in 2000, MOBIS has stepped up to the 12th overall ranking in the global automotive parts business with a sales figure that increased from \2.94 trillion to \17.23 trillion (as of end of 2009) and an astounding market cap that went from \4 trillion to \29 trillion. Based on the Three Business Policies, MOBIS is planning to invest \1.15 trillion to concentrate on the goal of becoming a Top 10 company.
▲ R&D Division
The R&D Division will start selecting potentially competitive products in the global market and taking them to the number one spot. The items will be selected by May after evaluating the features of the market/products and the market share will be expanded by greatly increasing the number of research staff and equipment. During the course of this year, research and development efforts will be increasingly focused on advanced and mass production technologies for brake products, airbags and eco-friendly products.
A budget of \360 billion has been allocated for these targets and the research pool that is currently heavy in mechanical and industrial engineering fields will be diversified to include specialists in software, electrical engineering, IT and mechatronics. A new R&D building is being planned for and it will be ready by 2012. This new addition will include a system for testing/evaluation for most of the parts that make up a car, including hybrid, electric and brake parts.
▲ Global Business and Electronic Devices Division
MOBIS will be active promoting itself in the global market. The Global Business Division has set a sales goal of $15 billion for this year and will be developing strategic products customized for each region, building a sales system centered on the domestic population, dedicating sales and R&D capacities for a successful entry in the Chinese market and attaining new customers through auto parts exhibitions.
The focus of these strategies was particularly on electronic devices, where the boundaries between automotive and mobile/IT technologies are becoming more and more blurred. Experts are forecasting that the percentage of electric parts in any given car based on cost is currently at 20 percent and this is expected to increase to over 40 percent by 2015. MOBIS has started developing independent systems and strengthening its business agility for IT-related products; it has also set its sales target at \2.5 trillion, which is 20 percent more than last year’s target, with smart systems, environmentally-friendly technology and IT convergence products as the axis of the Electronic Devices Division.
▲ Module Division
According to data analysis firm Global Insight, 69.7 million cars were sold in 2010 worldwide, but that number is expected to increase to 75.8 million thanks to a smooth economic recovery in 2011. In addition, besides the markets in China and India, new emerging markets like Mexico, Australia and Vietnam – aka MAVINS – begin to come into the limelight and the auto industry is expected to unfold into a big territorial war to attract buyers in these markets.
As a result, the Module Division will concentrate on the expansion of its global production base to support Hyundai KIA production and sales goal of 6.33 million units according to plan. The plan is to empower the independent management systems at each of the overseas plants in the US, China, India and Europe as a way to raise product competitiveness, while preparing for the completion of the constructions of the Brazil factory and China’s Factory 3 in 2012.
Furthermore, following the stricter legislations like mandatory installation of ESC (2011 in Europe; 2012 in Korea), basic installation of side airbags (Korea) and the trends of staying safe and going green, MOBIS plans to maximize its overall sales and build stronger partnerships with international auto makers.
▲ Auto Parts Division
The Auto Parts Division, which provides support for global sales of new Hyundai and Kia cars, will be working on securing new bases, thus optimizing logistics and inventory management and completing other innovative logistics paradigms. Three new bases will be added to the current roster of 29 logistics centers in the US, China, Europe and Russia to bring the total to 32 logistics centers. The new bases will be located in Italy, Russia and China. The ‘Direct Delivery System’, which has reduced many steps in logistics, will be utilized to more smoothly supply various parts to dealers and customers. Another goal is to maximize customer trust by getting fully equipped with a distribution system for 1.65 million items for 179 models (including the models to be newly released in 2011) in operation both in Korea and overseas.
“The ultimate goal for MOBIS is to acquire key technologies at the level of the global Top Five companies and to evolve itself into an automotive electrical parts specialist,” said MOBIS Vice-Chairman Chung Suk-soo. He added, “We will continue to work on key technologies and marketing skills to boost the overall global competitiveness of Hyundai KIA Motor, as well as to win more contracts with international carmakers.”