Hyundai Mobis sees billions of dollars in revenue growth in the United States thanks to electric vehicles

Another upcoming product is a rear-wheel-drive system that will allow a large electric vehicle to turn in a tighter radius than currently possible.

“The growing product plans for electric vehicles are the reason why we expect this huge growth rate,” Maschka said. Automotive News after his press conference at the auto show. “We are not like other global suppliers – we have no heritage in combustion engines. We have no exhaust systems, no transmissions, no fuel injectors. That’s why we expect to grow faster than others.”

Mobis was established as a parts business for Hyundai in South Korea, and the Hyundai Motor Group remains its biggest customer. It already had a large portfolio of front modules, lights, brakes, pumps, steering systems and more. But Mobis has been eagerly building a new base with the Detroit 3 and other international automakers that have operations in North America.

The company is set to launch a plant in McCalla, Alabama, to supply axles for electric vehicle production to a non-Korean automaker in the region. A version of its advanced virtual reality head-up display will go in an upcoming Detroit 3 vehicle. The company has also supplied millions of complete chassis modules to Jeep.

Without limiting itself to specific future sales figures, Maschka said Mobis non-Hyundai Motor Group business in North America currently stands at around $1.6 billion. But the new orders are equivalent to an additional $1.7 billion. And after a flurry of years of 36% growth, he said non-captive sales would reach between $4 billion and $5 billion.

On top of that, Mobis’ traditional customer, Hyundai, is itself ramping up its production of electric vehicles in the United States. The automaker said it will invest $5.5 billion in a massive new production center in Georgia over the next three years to build electric vehicles and batteries – a project that will likely boost Mobis sales even further. .

There will be a considerable cost to get there in terms of manufacturing investment, he acknowledged.

“We’re almost concerned about how to lift it,” he said. “The necessary investment is very important.” It would only specify a cost of “billions”.

“A challenge will be Mr. Biden’s cut inflation act,” the executive said of the new federal law that significantly tightens the rules on how an automaker can qualify to offer consumers tax credits of $7,500 on purchases of electric vehicles. The new rules could force some Mobis customers to speed up their schedules to launch more electric vehicles. This will mean that Mobis will have to scramble even faster to roll out its new EV product offerings.

“Getting things done in the United States means I can’t do everything I want to do in other regions, given manpower and resources.”