- MOBIS has signed a series of agreements worth a combined 1.07 billion USD to supply core auto parts with GM and Chrysler - Winning the competition against leading global automotive parts makers is testament to MOBIS’ superior technology and price competitiveness. - Good news for its goal to be one of the global top five by 2020. Business with North American automobile manufacturers is promising.
MOBIS (www.mobis.co.kr) has signed supply agreements worth 1.07 billion USD with General Motors Co. and Chrysler Group LCC, America’s most prestigious automakers, to supply core parts. MOBIS announced on January 31 that it would supply integrated center stacks (ICS) and light-emitting diode (LED) rear lamps to GM and Chrysler respectively and initiated relevant projects.
The ICS is a core component that controls multimedia devices in a vehicle. This value-added component is installed in high-end automobiles and can be manufactured by a small number of hi-tech companies around the world. MOBIS is the only producer of the component in Korea.
MOBIS will provide LED rear lamps to Chrysler’s flagship models. LED has emerged as an eco-friendly light resource that consumes one-sixth electricity of traditional light bulbs and lasts eight times longer. This green lighting method has become popular in the automotive lamp sector since it can be designed in various forms. MOBIS expects that these agreements will lead to more orders for Chrysler’s other popular models. Furthermore, the subsequent stable revenue stream will enable more investment in R&D, creating a virtuous business circle.
MOBIS won the fierce open competition against leading electric and electronic parts and lamp manufacturers around the world to sign the two contracts, which is a significant step for the company. Experts say that MOBIS is certainly now on its way to becoming one of the global top five as it matches reasonable prices with product quality. This is a positive change from the previous strategy employed by Korean auto parts makers to massively produce and sell a small number of models at low prices.
Vice President Joon-hyung Lee of the Overseas Business Department of MOBIS said “after we signed the contracts, car makers have shown a more favorable response to our request for purchase orders and technology consultations than before,” and added “we expect our business activities toward global auto manufacturers within important markets to benefit from the agreements.”
MOBIS has forged supply agreements with premium makers and has accelerated its move to be a major auto parts supplier since 2009. The contracts include audios (USD35 million) and intelligent battery sensors (IBS) (USD95 million) to Daimler, lamps (USD20 million) to Volkswagen, and rear combination lamp assembly (RCL) (USD80 million) to BMW.