[YesAuto Industry] As one of the three main forces of Hyundai and Kia Motors Group, Hyundai Mobis, the world’s top ten auto parts supplier, is backed by huge Korean cars as a strong business support, so Mobis Mobis also has a business breadth that is close to Magna (reading for details: “Speaking from Zero|The History of the “T-shaped” Development of Carmaker Magna”). In addition to tires, glass, and body-in-white, there is almost no Mobis The parts and components involved.
Thanks to this, there is also a very complicated equity relationship between Hyundai Mobis, Hyundai and Kia-the three are all shareholders of each other. Hyundai Mobis is the largest shareholder of Hyundai Motor, and Kia Motors also holds Hyundai Mobis shares, Hyundai Motor also holds a 37.33% stake in Kia Motors. It is precisely because of the complicated relationship between the three that they have become a community of interests that “blessed and shared, and shared difficulties.”
Column introduction: “Speaking from Zero” is a column that tells the story of a century of auto parts companies and analyzes their transformation. Deconstruct the century-old history of international mainstream parts and components companies, pay tribute to the influential figures, and explore the future of each company in the digital age. In the first phase, six well-known component companies including Bosch, Continental, Denso, Magna, ZF, and Hyundai Mobis will be selected as typical cases.
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1. With the continuous expansion of the company's business, the change of the company's trade name is constantly being mentioned. Until November 2000, the company was officially renamed as Hyundai Mobis (MOBIS), the company has been using the trade name of “Hyundai Seiko”.
2. In 1990, Hyundai Seiko began to get involved in vehicle auto parts. The opportunity to enter this market was that Hyundai Group had already started the automotive business, and Hyundai Seiko had already possessed related technologies such as motorcycles and commercial vehicle transmissions.
3. Counting from the initial production of containers to the production of traditional auto parts, Hyundai Mobis is more enthusiastic about auto mechanical systems and electronics.
4. From the perspective of business divisions, Hyundai Mobis is mainly involved in three areas: automotive system solutions, automotive module manufacturing, and after-sales service parts.
●The evolution of the business name Tier 1 developed from “Korea Seiko”
In the spring of 1977, a sign named “Koryo Seiko” was hung up on the 4th floor of Sewin Mall at 175-4, Jongno 3rd Street, Jongno-gu, Seoul. This was the office where Hyundai Mobis was originally located. The predecessor of “Koryo Seiko” was “Hyundai Auto Repair Shop”. The purpose of the establishment is to make Hyundai Motor grow into a comprehensive automobile enterprise integrating production, sales and service.
At first, in order to give the company a resounding name, Zheng Zhouyong, then president of Hyundai Industry, racked his brains. At that time, Zheng Zhouyong often went to Japan on business trips. Considering that companies in the precision industry used the term “Seiko”, he thought of initially setting the company name as “Korea Seiko”. However, since other small and medium-sized enterprises have already used this name, they had to change the name.
On June 25, 1977, everything was ready, and Korea Seiko held an inaugural meeting to clarify the business objectives and other matters. However, there has always been controversy as to what trade name the company uses. On July 1, the company held an extraordinary general meeting of shareholders to discuss the change of business name. Before the establishment of a new company, when it was still a division of Hyundai Industries, the company had always used the name “Hyundai Heavy Industries” to supply containers. The newly established company wanted to gain the trust of foreign customers, so some people proposed to continue to use “Modern Heavy Industries”. “This firm. After a vote, the company's trade name was changed from “Koryo Seiko” to “Hyundai Seiko”. As a result, the development path of Hyundai Seiko was opened.
With the continuous expansion of business, Seiko developed from the development of presses, precision bearings, and motorcycles in 1985, to golf cars, machine tools, special containers, mid-term transmissions, special trailers, and engineering plastics in 1986, to commercial vehicles in 1987. Transmission and aviation business, construction of heavy industrial equipment, mold making business, etc.
From then on until the late 1980s, the company began to build diversified businesses, the core of which was the promotion of technology-intensive industries, and a policy of cultivating the precision machinery industry sector and the automotive sector as its main businesses. As a result, Hyundai Seiko has completed participation and seminars in high value-added industries such as machine tool machinery, commercial vehicle transmissions, injection molding machines, small engines, 4-wheel drive vehicles and special vehicles, and aviation, and they have formed special responsibility for promotion. To promote career development.
At this moment, someone proposed to change the company's trade name. At that time, there were 9 representative business projects operated by Hyundai Seiko, and the business capabilities of each business department were comparable, thus presenting the appearance of a comprehensive machinery company. As a result, an internal proposal was made to change the business name to “Modern Comprehensive Machinery”, but this proposal was not passed.
In 1993, the change of the company name was put on the agenda again. The name discussed at that time was Hyundai Vehicles. Later, someone proposed to switch to the English mark, but the matter was temporarily shelved due to “industrial restructuring”. Until November 2000, it was officially renamed Hyundai Mobis (MOBIS).
MOBIS is a compound language of Mobile and System. It is combined with the word Mobile, which represents movement, and System, which represents complex machinery and equipment, which means “auto parts companies that manufacture auto parts systems.”
●How to become a parts supplier?
How does Hyundai Seiko embark on the road of auto parts? To answer this question, you have to start with the story of the second generation of a chaebol. He is the second son of Zheng Zhouyong, the founder of Hyundai Group, Zheng Mengjiu.
After graduating from university, Zheng Mong Koo joined Hyundai Group, the largest and highly diversified industrial group in South Korea. By the mid-1970s, Zheng Mengjiu had personally participated in the establishment of the new department of Hyundai Seiko Industrial Group Co., Ltd., which is the aforementioned “Korea Seiko” located on Jongno 3rd Street, Jongno-gu, Seoul.
At that time, just as South Korea's export industry was growing and ocean shipping increased, Zheng Meng-jeou recognized the increase in demand for ocean-going containers. Therefore, in this new joint venture, Hyundai Precision Industry Co., Ltd. has established standards for automobile containers and gained a competitive advantage through production technology and product development. Subsequently, the business continued to expand, even covering shipping and railway transportation businesses.
In 1990, Hyundai Seiko began to get involved in complete vehicle auto parts. The opportunity to enter this market was that Hyundai Group had already started the automotive business, and Hyundai Seiko already had motorcycles, commercial vehicle transmissions and other related technologies. In 1991, a mid-size SUV-Hyundai Galloper was displayed at the Hyatt Hotel in Seoul. At that time, no one expected that a “pet project” in Zheng Mengjiu's heart would become popular in the future.
The later story is that Zheng Mengjiu took over the automobile department from his uncle Zheng Shiyong in a complicated process of family fighting, and gradually expanded the business. Of course, he has not only Hyundai Motors in his hands, but also five other companies including Hyundai Seiko. Later, the automobile department also acquired Kia Motors.
At this time, coincidentally encountered the Asian financial crisis, Hyundai Group began to adjust its structure, Zheng Mengjiu took the opportunity to independent auto and related departments, intending to create a separate auto group. As part of the structural adjustment, Hyundai Seiko transferred the production of four-wheel drive vehicles such as Galloper and Santamo to Hyundai Motor.
Hyundai Seiko also took aim at this opportunity and transformed itself into a first-tier supplier of Hyundai Motor Company by virtue of its previous technological accumulation. At the end of 1999, the new chassis was officially put into production and supplied to Hyundai Motor. Since then, the company has reborn as a professional auto parts company.
●Set a small goal first: to be among the most popular in the world
2008 can be regarded as a watershed in the development of Hyundai Mobis. On January 11, Yongin City, Gyeonggi Province, South Korea. Hyundai Mobis held a management meeting with about 100 managers, including CEO Zheng Mengjiu.
At the meeting, first of all, the development plan for 2008 was clearly sorted out. According to the plan, Hyundai Mobis' domestic sales will strive to achieve 9.24 trillion won (approximately 9.87 billion U.S. dollars), an increase of 7.3%, while overseas, this figure will reach 5.98 trillion won (approximately 64 Billion U.S. dollars), the growth rate reached 23%.
It is at this conference that Hyundai Mobis has set an arduous development task to be among the world's leading parts manufacturers by 2010. At that time, Hyundai Mobis ranked 25th in the global auto parts industry.
●Interlude: the merger of twists and turns
Time went to 2009. At that time, more than 90% of Hyundai Mobis’s sales came from Hyundai and Kia Motors. , Realizing about 25% of sales comes from automobile companies other than Hyundai and Kia.
This requires Hyundai Mobis to continue to expand its strengths. At the time, Hyundai Mobis and Hyundai Autonet were planning to merge, and the two companies belonged to the Hyundai Motor Group. However, there is a criterion in the merger process that the shareholders of Hyundai Mobis can sell shares at 79,190 won per ordinary share and 41,788 won per preferred share, and correspondingly, Hyundai Autonet’s shares can be sold at 3325 won per share. .
However, some shareholders requested the priority to repurchase Hyundai Autonet's 2.9 trillion (trillion) won (approximately US$2.3 billion) shares at the time, far exceeding the 300 billion won share repurchase limit set at the time, which caused it to be temporarily shelved at this time. . It was not until June 2009 that the plans of both parties were officially approved.
●Reality version of “Heirs”?
History is always surprisingly similar. Ten years later, Hyundai Mobis was again voted against by shareholders due to the split. In March 2018, Hyundai Motor Group announced a corporate restructuring plan to divest its auto parts supplier Hyundai Mobis from its module and parts after-sales business. These two parts of the business will be the same as Hyundai Glovis, another subsidiary of the group. Merger.
At this time, Hyundai Mobis has clearly planned to focus on the core auto parts business operations and related research and development activities in the future. Next, Mobis will also enter the field of future driving, such as self-driving cars and connected cars.
On the surface, this is undoubtedly a commercial act. But behind the scenes, what is really going on is a “handover of power” drama. At that time, Zheng Mengjiu was planning to transfer part of the business to his son Zheng Yixuan through a business divestiture.
However, the shareholders did not pay for this, including the Elliott Management Company owned by billionaire Paul Singer, who expressed opposition to the transaction between Hyundai Mobis and Hyundai Glovis on the grounds of defrauding shareholders, and urged Hyundai Returned more than 12 trillion won (approximately US$11.2 billion at the time) in cash to shareholders. Later, 47-year-old (2018) Zheng Yixuan admitted in an interview with the media that Hyundai Mobis needs to make more efforts to gain shareholder approval.
●” Five Lakes and Four Seas” drawing territory
Looking back at the history of Hyundai Mobis’ global expansion, it can be traced back to September 19, 1984, when Hyundai Mobis established the first overseas local corporate company in history—HYSI (Hyundai Steel Industries) in the suburbs of Las Vegas, USA. Inc.). Subsequently, HYMEX (Hyundai De Mexico5.A.De.CV) was established in Mexico. Of course, the former is to grab the market, and the latter pays more attention to cheap labor.
While accelerating its deployment in the American continent, Hyundai Mobis certainly cannot let go of the “fat” in the Asia-Pacific region. In terms of the market share of Hyundai Mobis in various regions, the main force is undoubtedly the Asia-Pacific region. Especially for the two major markets of China and India, there is unparalleled potential in the development speed of the auto industry.
“Beijing Mobis Completion Ceremony”
Since 2002, Mobis has entered the field of auto parts in China, and has established 8 legal entities centered on Beijing and Shanghai. Mainly produce disc brake assembly, drive axle assembly, restart shock absorber, combination instrument, etc.
In 2006, Hyundai Mobis established a plant in Chennai, India, which mainly produces three modules: chassis, cockpit, and FEM. At the same time, it continued to expand the chassis, and then built a factory in Chennai to produce airbags and sound systems. Mainly produce and assemble automobile chassis and cockpit modules, manual and automatic automobile transmissions and other automobile parts.
By October 2007, Hyundai Mobis had begun to build its second plant in Georgia in the United States, which will be mainly engaged in modular production. This plant will consume 71.6 billion won (approximately US$77.9 million) of Mobis's funds, and the number of local employees will reach 600. After it is put into production, it can provide parts and modules for 300,000 vehicles every year.
In 2009, Hyundai Mobis built and operated a core module factory in Slovakia, where Kia entered, and also built a module plant in Nosovice, Czech Republic, where Hyundai Motor entered, to help Hyundai and Kia develop the European market.
In 2015, Hyundai Mobis spent US$420 million to build a new parts plant in Mexico to meet the supply needs of Hyundai and Kia Motors, and officially put into production of automotive modules and lights in 2016.
Of course, the goal of global development is still going on. So far, Hyundai Mobis has more than 25,000 employees, 28 production bases, 24 logistics bases, and 5 in China, the United States, Europe, Asia and other countries all over the world. Technology Research and Development Institute.
|R&D layout of Hyundai Mobis global base|
|classification||Production base||Logistics base||Technology R&D Institute||Quality Center||office|
|Data source: Hyundai Mobis official website; Tabulation: Autohome Industry Channel|
●Follow the trend of transformation
Nowadays, the auto industry is breaking the original boundaries with new technologies and new business models. In order to adapt to the development of the new era, component suppliers have taken the lead in testing new technologies and predicting industry trends. This has also made component manufacturers increasingly “not doing business properly.” . Hyundai Mobis will naturally follow this trend. Starting from the initial production of containers, to the production of traditional auto parts, this company is now more enthusiastic about the fields of auto mechanical systems and electronics.
From the perspective of business divisions, Hyundai Mobis is mainly involved in four areas: automotive system solutions, automotive module manufacturing, and after-sales service parts and genuine products.
In the field of system solutions, Hyundai Mobis provides a new generation of decoration and chassis products that combine automotive core component technology and software capabilities to create IT and electronic systems, as well as autonomous driving, electric vehicles, and IVI that represent future automotive technologies. Among them, in the field of autonomous driving, Hyundai Mobis independently researches and develops autonomous vehicle sensors-radar, camera and lidar. According to the plan, Hyundai Mobis will mass produce five radar equipment, and it is expected to complete the research and development by 2021. By 2022, it is expected to realize the application of L3 level and higher level autonomous driving technology on highways.
In terms of automotive module manufacturing, it mainly provides three core modules: chassis, cockpit, and front wall. And from the initial stage of research and development such as design and testing, it has cooperated with vehicle companies.
In terms of after-sales service parts, Hyundai Mobis provides AS parts supply services for approximately 5,700 Hyundai and Kia vehicles at home and abroad. Hyundai Mobis owns and manages more than 2.27 million auto parts in 213 models.
In general, Hyundai Mobis is undergoing a new round of transformation and is creating a new industrial pattern in a fiercely competitive environment. However, if you observe carefully, you may find that such changes have a complementary relationship with the transformation of Hyundai and Kia.
In 2015, Hyundai Mobis ranked sixth in the global auto parts industry. And now, he has a new goal-to become a Global Top Tier, and he is transforming from a module-centric to an electronic-centric industrial structure.
It can be said that the reason why Hyundai Mobis can achieve today's results is closely related to Hyundai and Kia Motors. Thanks to the growth of Korean cars, Hyundai Mobis continues to expand its capabilities. Now, Hyundai Mobis is also supplying core parts and components to car companies such as General Motors and Chrysler Group, deliberately getting rid of the status quo of “relying on a tree to enjoy the cool” and learning to grow up. After all, once the “Korean Wave” in the market has a tendency to fade, then it will face the cruel market competition.