Hyundai MOBIS President Jun Ho-suck said, "I declare the year 2012 a year for establishing a future growth foundation by strengthening our crisis management capabilities."

"The global car market has recovered to pre-financial crisis production levels, but as demand is forecast to stand at 78 million units globally, competition among automakers is likely to mount. Our Hyundai Automotive Group is now set to mass produce 7 million units yearly, and in order to cope with this, we have to not only enhance our manufacturing competitiveness, but also overcome hardships and obstacles such as foreign currency issues and technological competition." President Jun called for his executives and staff to have a new resolve to achieve this year's management goals without fail amid these uncertain times. 

Looking back at last year, he said Hyundai MOBIS was able to further expand its Korean and foreign production plants — stabilizing a module plant in Russia, completed in late 2010; dedicating an airbag plant in Gimcheon, North Gyeongsang Province and an automotive coating plant in Alabama, the United States; as well as the seamless progress of projects to construct the third module plant in Beijing and a module plant in Brazil. 

Hyundai MOBIS surpassed its 2011 business goals and was honored with the $8 billion Export Tower during the Trade Day anniversary event. The Korean automotive company saw its global economic edge rising to new highs through shared growth with its cooperative partners, and it ranked among the global top 10 automotive parts makers, taking a step forward toward becoming a global leader, Jun said. 

Regarding the 2012 management tenets, first he called for his executives and staff to brace for a crisis by stepping up the company's competitiveness. President Jun told his staff to concentrate on companywide activities to improve profitability. Hyundai MOBIS will strive to reduce material costs by establishing optimum production planning systems and proper stock systems while minimizing the so-called quality cost by establishing a perfect Q-COST system. Hyundai MOBIS will also concentrate on its capability to improve profitability fundamentally through the localization of major products and technology and the development of its own models. 

Hyundai MOBIS will redouble its efforts to improve field-oriented quality to realize Global Top Quality (GTQ)-2015, calling for enhancing its quality to world-class standards by 2015, Jun said. The company should take preventive steps so as not to spread quality issues by establishing sector-by-sector quality improvement and correcting problems on the scene immediately while striving to upgrade the quality of Korean and overseas operations to global standards. Hyundai will also devote itself to specializing in procurement and strengthening capabilities with its cooperative partners, he said.

Second, he called for ramping up his company's future core capabilities for its sustainable growth. Hyundai MOBIS will have to efficiently cope with the Hyundai Automotive Group's mass producing of 7 million units yearly. In particular, Hyundai MOBIS needs to stabilize the new third module plant in Beijing and the new module plant in Brazil as soon as possible. The company will also have to support its automobile manufacturing companies by dramatically improving after-sale parts service levels and operational capabilities. To this end, Hyundai MOBIS will have to raise its market share by stepping up its customer and product segmentation strategies as well as its marketing capabilities. 

Hyundai MOBIS will have to be reborn as a more technology-oriented company by stepping up its mechanics and electronics convergence capabilities in the advanced future automotive technology sector.

Third, he urged his staff to nurture its organizational capabilities in conformity with its corporate global standing. Last year, Hyundai MOBIS established a mid- and long-term roadmap to ensure the efficient operation and self-sufficiency of its overseas operations. Overseas companies are asked to ramp up their fundamentals so that they can be independently managed on their own. Hyundai MOBIS will continuously pour investments into nurturing global leaders so as to build its capability for expanding its overseas business environs while exploring mid- and long-term future growth engines through the exploration of new markets and business opportunities.   nw