GM honors Hyundai Mobis as top supplierHyundai Mobis has been selected as one of General Motors’ Suppliers of the Year, the auto parts maker announced on Tuesday.
It is the first time that Korea’s biggest auto parts manufacturer was honored with the award since it began supplying the Detroit-based automotive giant in 2010.
General Motors (GM) selects 3,000 first-tier companies as Suppliers of the Year in 10 product categories that range from chassis to powertrains. The carmaker evaluates product quality and innovation, among other criteria.
Hyundai Mobis was recognized in the vehicle component sector, along with 15 other suppliers. Hyundai Mobis supplies GM with integrated center stacks (ICS), which play a key role in controlling cars’ multimedia and climate control functions. It also provides GM with an automatic occupant sensor that detects whether a passenger is inside a car and a type of parking brakes.
Hyundai Mobis said it supplied auto parts worth some $1.1 billion so far to GM. Its components are used in many different types of cars, including large SUVs and family sedans.
“When attracting orders, it’s not just about a company’s technological or product competitiveness. Reliable relationships with the company play a big role in bringing about positive results,” said Jeoung Jeoung-hwan, vice president of the auto parts business division at Hyundai Mobis. “As we are building solid partnerships with global companies, Hyundai Mobis is vying to expand its global orders with auto components related to future mobility.”
One the biggest tasks ahead of Hyundai Mobis is supplying more parts to international carmakers, so it can reduce its reliance on its affiliates Hyundai Motor and Kia Motors. The parts maker has a goal of making 40 percent of its profits from global automakers in the future. In order to achieve this target, Hyundai Mobis said it would make the best use of its overseas production lines and diversify its lineup to provide more core components for new types of cars. It said that its target market is not developed markets like Europe, Japan and the United States but also emerging economies such as India and Brazil.
Hyundai Mobis is banking on the rising popularity of pick-up trucks and SUVs in North America to expand its sales of ICS. The center stacks are Hyundai Mobis’ most important multimedia-related auto component, according to the company.
Hyundai Mobis also said it recently formed a partnership with Italian-American carmaker Fiat Chrysler Automobiles. Since 2013, Hyundai Mobis has supplied the carmaker with disassociated center stack displays, which are similar ICS. Hyundai Mobis also started supplying ICS to French carmaker PSA in 2015.
BY JIN EUN-SOO [email@example.com]