SOUTH KOREA: Hyundai Mobis eyes more non-group sales
Hyundai Mobis is eyeing supplying parts to more German car makers and automakers in China, a senior executive said on Thursday.
The supplier aims to boost sales to non-Hyundai companies to 25% of total revenue by 2015 from around 10% now, Lee Joon-hyung, chief operating officer and executive vice president of Hyundai Mobis' global business team, told Reuters at the Seoul motor show.
"Premium makers in Germany which were not interested in us a few years ago have changed their positions to look at our products and we are now in talks with BMW and Mercedes-Benz," Lee told the news agency in an interview.
"We are in talks with Volkswagen on a further supply deal to provide car parts to its new plant in Tennessee," Lee added. Hyundai Mobis already supplies some parts such as lamps to VW.
Hyundai Mobis is also negotiating with local and joint venture automakers in China on new supply deals, Lee told the news agency.
The company is seeking an additional parts deal with Chrysler, although is taking a close look into the situation in the troubled automaker, Lee said.
Reuters noted that the comments came as analysts said Hyundai Mobis needed to reduce its dependence on car-making affiliates Hyundai Motor and Kia Motors.
"Currently, we are depending on 90% of our sales to Hyundai and Kia. But we aims to bolster sales to non-Hyundai companies to 25% by 2015," Lee said.
Hyundai Mobis has seen a recovery in parts orders recently as makers were ordering components for car production in the second quarter, resuming operations at some idled factories.
"In the first quarter, we suffered much from a big fall (in orders). But orders, especially ones for popular models, for the second quarter are rising," Lee said.
Still, it was premature to expect a recovery in a near term as the global financial markets remain fragile, Lee said.
"I expect the global market to recover from the end of this year at the earliest," he told the news agency.