Hyundai Mobis Wins $2 Billion Order From Chrysler
Sept. 2 -- Hyundai Mobis Co., South Korea’s biggest auto-parts maker, won a $2 billion order from Chrysler Group LLC, the largest-ever overseas contract for the Seoul- based company. The shares rose to a record.
Mobis, an affiliate of Hyundai Motor Co., will supply front- and rear-chassis modules
for Chrysler’s Jeep Grand Cherokee and Dodge Durango models
, the company said in an e- mailed statement today. Modules are pre-assembled parts kits that can be quickly installed by automakers.
Mobis aims to increase sales to carmakers other than Hyundai and Kia Motors Corp. to about 30 percent of its total revenue from the current 10 percent over the long-term as it seeks to diversify clients. The company has been providing chassis modules for Chrysler’s Jeep Wrangler since 2006 from its factory in Ohio.
“Mobis has been enhancing its quality and price competitiveness over peers, and it should be able to boost its presence in the global auto industry together with Hyundai and Kia,” said Stephen Ahn, the head of research at LIG Investment & Securities Co.
Mobis rose as much as 7.5 percent to 150,000 won and traded at 145,000 won as of 11:26 a.m. on the Korea Exchange. The benchmark Kospi index slid 0.6 percent.
Mobis will install a new line at its U.S. factory close to Chrysler’s Jefferson North Assembly Plant in Detroit, where the Grand Cherokee and Durango are to be built, Mobis said. It aims to begin test production from February 2010, the statement said.
LINK:Hyundai Mobis Wins $2 Billion Order From Chrysler (Update1) - Bloomberg.com