KG Mobility aims for efficiency with mixed-model assembly

Industry

Published: 24 Apr. 2024, 16:45

KG Mobility aims for efficiency with mixed-model assembly

The Torres EVX being made at KG Mobility's plant in Pyeongtaek, Gyeonggi, on Tuesday [KG MOBILITY]

PYEONGTAEK, Gyeonggi — KG Mobility’s Rexton SUVs and Torres EVs are now being made side by side at a manufacturing factory in Pyeongtaek, Gyeonggi.

The situation is unique, as the Rexton is a gasoline-powered SUV, while the Torres is a pure EV that uses a completely different power supply and requires a different body structure.

The mixed-model assembly line is KG Mobility’s latest bet to boost profitability after it made profits last year for the first time in 16 years. KG Mobility has recently invested 50 billion won ($36 million) in upgrading its plant in Pyeongtaek, which allows it to produce all its models on a single assembly line.

The Torres EVX being made at KG Mobility's plant in Pyeongtaek, Gyeonggi, on Tuesday [KG MOBILITY]

“Thanks to the mixed-model assembly line, we don’t have to leave the factory nonoperational, even when there are no orders,” said Park Jang-ho, head of production at KG Mobility’s plant. “If orders for a typical model fall, we can make other models there instead.”

“Our factory is the first domestic factory that produces EVs and gasoline-powered cars at the same line.”

The plant is on 860,000 square meter (213 acre) site and is home to a total of 4,222 employees as of the end of March. It specializes in producing SUVs, like Tivoli, Korando and Torres, and the electric versions of those.

The upgraded manufacturing plant looks surprisingly mysterious. When SUVs are made, an engine gets attached to the vehicle, and when an EV is made, a battery pack is prepared to be attached.

To differentiate the vehicles on the assembly line, Torres EVX models are covered with pink-colored fabric and Rexton with purple.

The Torres EVX being made at KG Mobility's plant in Pyeongtaek, Gyeonggi, on Tuesday [KG MOBILITY]

Thanks to the new style of line, the assembly line can now produce 30 vehicles per hour, an increase from 22.

But above all, very few workers are now present at the factory, and instead, hundreds of robotic arms fill the spots. A total of 190 robots and 104 jig units, machines that locate car components, work at the plant.

“The new line aims to maximize productivity, so there will be no layoffs,” Park said.

The O100, an electric pickup, and the KR10, the succeeding model of the Korando, will be produced at the plant. Both models are slated to be launched next year.

“Hybrid vehicles will be produced here starting next year,” Park said.

KG Mobility reached profit in 2023 for the first time in 16 years, posting 12.5 billion won in operating profit compared to 112 billion won in operating loss in the previous year. It sold a total of 116,099 units last year, up 1.9 percent on year.

The company's exports hit an all-time high of 52,754, the highest since 2014.

The Torres EVX was the No. 4 most-sold EV in Korea in the first quarter, even beating Hyundai Motor’s Ioniq 6.

Previously known as SsangYong Motor, the company was acquired by a KG Mobility-led consortium in October 2022, helping the carmaker exit a court-led, 18-month debt restructure. The company was put under court receivership in April 2021 after its owner failed to find new investors due to the Covid-19 pandemic and financial difficulties.