The South Korean auto parts giant Hyundai Mobis is preparing for a major global offensive on advanced technology segments, including vehicle electrification systems, advanced communications and driver-assistance features.
But first it has an internal task to take care of: It has to bring down its manufacturing costs to become more competitive.
The multiline supplier, which is the affiliated parts business of Hyundai Motor Group, intends to spend $7.8 billion to expand its presence in electrification and next-generation technologies, increasing its worldwide factory capacity for components such as electric vehicle batteries and boosting r&d spending to move ahead in new areas.
In January, it entered the market for head-up windshield displays with its first product debuting on the new Genesis GV80 crossover.
But the supplier has a larger aim: It expects to win business away from the industry's big competitors in Europe and North America, including Bosch, Continental and Magna International.
Long attached at the wrist to Hyundai and Kia, even relying on the automakers in the past for its R&D lab space, Hyundai Mobis is now making a run for it. Less than 10 percent of its business currently comes from outside the Hyundai family — Hyundai Mobis wants to increase that to 40 percent.
But to succeed, its executives freely acknowledge, the company is going to have to beat down costs.