- First contract in Japan; $200 million contract with Mitsubishi, $33 million contract with Subaru - From Europe to the U.S. to Japan – MOBIS is now a world-class automotive lamp company - First export contract for LED headlamps; changes to come in the business of Korean parts
After starting exports of high-tech modules and core parts to leading carmakers around the world, MOBIS has finally started targeting the Japanese auto market, known for its strict quality standards.
MOBIS recently signed a $200 million contract with Mitsubishi for headlamps and a $33 million contract with Subaru for rear lamps. The products will be manufactured at the Gimcheon Plant and delivered starting later this year. This is the first time that MOBIS has taken orders from Japanese companies. Additionally, these are also the largest orders ever placed to any auto parts maker in Korea by Japanese companies for single items.
Halogen, HID and LED head lamps will be supplied to Mitsubishi. In particular, the LED head lamps, which will be supplied starting late next year, have been developed by MOBIS in collaboration with Samsung LED last October and are known in the world industry for their superior performance and price competitiveness.
The MOBIS LED head lamps are 15 to 40 percent brighter than the lamps from leading competitors, emitting a consistent amount of light in various directions. The heat emission is also minimized to prolong the product’s lifespan, making this a greener option. They have received very good reviews by BMW representatives during the MOBIS Tech Fair held at the BMW R&D center in March. This is the first time any Korean company has signed a deal for exporting LED head lamps abroad and the success of this deal is expected to lead to more contracts in the future.
Through this contract, MOBIS will now be supplying lamps to carmakers in Europe (BMW and Volkswagen), the U.S. (Chrysler) and to Japan, establishing a solid ground for lamps around the world. During the open bidding, MOBIS came above the Japanese companies leading in the global markets, thus further proving that MOBIS lamps have become competitive around the world. This is an amazing feat for MOBIS after launching its lamp business only four years ago.
This deal is also expected to set a different precedent for overseas contracts of auto parts made in Korea. So far, only parts that have been first supplied to Korean carmakers and thoroughly tested in the market for quality have been able to win orders from companies overseas. The MOBIS LED head lamps have never been installed on any Korean cars, but they have successfully won contracts for exports to leading car manufacturers.
The Intelligent Batter Sensors (IBS), which are installed on all Mercedes-Benz models since 2009, as well as the Adaptive Front Light Systems (AFLS, aka adaptive head lamp) installed on Chrysler from this year onwards, are the two MOBIS parts that have successfully won foreign contracts before being used on Korean cars.
This is an indication of the trust and reliability that MOBIS has earned for its technology and quality. MOBIS expects that the improved trust from the industry for these products will lead to further exports, thus setting new rules in the way MOBIS products are sold to companies overseas.
MOBIS Exports Division VP Lee Joon-hyung said that he “visited Mitsubishi last year to hold the ‘MOBIS Tech Fair’ and Mitsubishi representatives lauded the MOBIS for technology, quality and production capacity when they visited the MOBIS labs and plants,” and added, “we have achieved our exports targets of $1.52 billion this year and will increase the percentage of exports from our sales from 10 percent to 30 percent by 2015.”
MOBIS held the MOBIS Tech Fairs at major car making companies around the world, including BMW, Ford, Peugeot-Citroen, Chrysler and Mitsubishi, with the purpose to earn trust for its quality and technology. Starting this June, the MOBIS Tech Fair events were organized in collaboration with partner companies; these joint marketing efforts by MOBIS and its partner companies have helped expand the exports of Korean parts around the world.