A view of Hyundai Mobis' factory in Kecskemet, Hungary / Courtesy of Hyundai Mobis
Hyundai Mobis has begun supplying chassis modules for vehicles produced in Europe by Mercedes-Benz, expanding its partnership with the German carmaker beyond North America and strengthening its foothold in the European market, the Korean auto parts maker said Tuesday.
The company recently completed building a new production facility in Kecskemet, Hungary. The plant is now fully operational and will produce chassis modules primarily for electric and hybrid vehicles manufactured by Mercedes-Benz in the region.
Since 2022, Hyundai Mobis has been supplying chassis modules — including complete front and rear axle assemblies — to Mercedes-Benz through its plant in the U.S. state of Alabama. The new Hungarian facility marks an expansion of that supply relationship into Europe.
A chassis module is a key component installed beneath a vehicle’s body, which houses steering, braking and suspension systems, as well as the integrated assemblies that mount these systems to the vehicle frame.
Located near the customer’s manufacturing site, the Kecskemet plant covers about 50,000 square meters and operates under a just-in-sequence (JIS) production system. The system enables Hyundai Mobis to receive real-time production schedules from the German carmaker and immediately manufacture and deliver components in the precise order required on the assembly line.
The company said the new supply contract reflects the trust it has built through stable deliveries, advanced production technology and strong quality competitiveness at its Alabama facility.
Workers at Hyundai Mobis' production line in Hungary assemble auto parts in this undated photo. Courtesy of Hyundai Mobis
Initially, the Hungary plant will supply chassis modules for Mercedes-Benz electric and hybrid models. It is equipped with flexible manufacturing lines capable of mixed production, allowing the facility to assemble components for electric, hybrid and internal combustion engine vehicles, depending on the carmaker’s production plans.
Hungary has rapidly emerged as a major automotive production hub in Central and Eastern Europe, with annual output exceeding 500,000 vehicles. The country hosts production bases for several global carmakers, including major German brands, while Chinese carmakers and battery manufacturers are also making large-scale investments.
Source: Korea Times News
