Hyundai Mobis, South Korea’s largest automotive parts maker affiliated with Hyundai-Kia, has announced a US$2bn contract to supply Chrysler with front and rear chassis modules for its Dodge Durango and Jeep Cherokee models from 2010.

Hyundai Mobis is expected to start pilot production in early 2010 at a new purpose-built production line being built at its existing Detroit site, which is adjacent to Chrysler’s Jefferson North Assembly facility. The existing plant began supplying chassis modules to Chrysler in 2006 for the Jeep Wrangler.

Hyundai Mobis’ front modules include breaking, suspension and steering systems assembled onto a front chassis frame. The rear modules include braking and suspension systems ready mounted onto the rear cross-beam. They are designed for quick assembly on automakers’ assembly lines.

Hyundai Mobis already supplies chassis modules for Chrysler’s Jeep Wrangler from its factory in Ohio. The company aims to decrease its dependence on Hyundai-Kia from the current 90% of sales to around 30% of the medium term.

Tony Pugliese