Wednesday, September 2, 2009
Hyundai Mobis receives $2-billion parts deal from Chrysler
Hyundai Mobis, a subsidiary of the Hyundai Motor Company, reported today that it has won an order worth 2-bliion dollars from Chrysler. This is the largest automotive parts contract that the Mobis received from a foregin automaker.
In an official statement, issued today, Hyundai Mobis announced it will supply Chrysler with front and rear chassis modules. The company will start providing the modules in May 2010. Mobis also noted that it will not supply modules from South Korea, but rather than that, it is going to set up a new production line located near Chrysler's manufacturing plant in Michigan.
The supplied front and rear chassis modules will be used in several models including Chrysler's Jeep Grand Cherokee and Dodge Durango. But, this is not the first order that Mobis received from Chrysler. The company has been providing chassis modules for Jeep Wrangler since 2006 from its factory in Ohio.
"This is a major acknowledgement for Hyundai Mobis and its technological edge and will certainly help the company to win more contracts from other US carmakers. Mobis will also supply parts to Kia's manufacturing plant located in Georgia, which is currently under construction and is scheduled to start operating in november this year.
The $2-billion deal will help Mobis to increase sales to carmakers other than Hyundai and Kia to about 30 percent of its total revenue from the current 10 percent over the long-term as it seeks to diversify clients said company in the statement.
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