South Korean automotive component supplier Hyundai Mobis today (20 August) said that it had signed a deal with French automaker PSA Peugeot-Citroën on the supply of parts, reports the Nikkei. The companies have signed a KRW22 billion (USD18.5 million) deal for the supply of switch modules to be used to control audio, air conditioning, and other features, in a model that will enter production at the French automaker's plants during 2017. Hyundai Mobis plans to manufacture the switch modules at its factory in the northeastern Chinese city of Tianjin and export them to France.
Significance: Hyundai Mobis has ambitious plans to become one of the top five global automotive component suppliers by 2020. As well as gaining from sales to its car-making affiliates under the Hyundai Motor Group – Hyundai and Kia – in growth regions such as China, the component supplier aims to generate 20% of its sales from overseas automakers by 2020, up from around 10% now. Hyundai Mobis has also been working towards securing new supply contracts with non-Hyundai Group companies as it aims to broaden its client base, and the new supply deal with the PSA Group is a positive development in this direction. Other current Hyundai Mobis customers include General Motors, BMW, Chrysler and Zotye Auto. The company recently established a new manufacturing plant in Turkey in a bid to make further inroads in Europe and to supply European OEMs, given Turkey's growing strategic importance as a link between Europe and Asia. Hyundai Mobis has clarified that its Tianjin factory has not been affected by the blasts that took place at the port last week.
