【2017威尼斯登陆网站】Hella and BHAP form electronic
原标题：Hella and BHAP form electronics JV
WHAT’S THE STORY?Conflict defused: Hyundai Mobis shares jumped 5.23% yesterday after Hyundai Motor(HMC) and China’s BAIC said their plant is normalizing at a 15-year anniversarycelebration of their joint venture. Utilization rates are rising ahead of model releases, andthe partners have paid accrued payables to parts suppliers and will not demand price cuts.
Hella and BHAP form electronics JV to begin production of electronics control units in 2020
Longer term, Mobis may set up a JV with BAIC subsidiary Beijing HainachuanAutomotive Parts—this could erode its profitability in China but could help it add clientsand reduce the Hyundai Motor Group’s Chinese business risk. With sector boundariesdisappearing and complicated political interests an inherent difficulty in the auto industry,HMG’s vertically integrated structure likely is unsustainable. Mobis already runs itsaftermarket parts business in China in the form of JV.
BEIJING – Hella and BHAP, BAIC Group's parts and components subsidiary, signed a contract for the founding of a joint venture named Hella BHAP Electronics (Jiangsu) Co., Ltd. on April 26 on the sidelines of the Beijing Auto Show.
Big overseas orders: Mobis shares also benefited from news that the company haswon KRW5.3t of orders from US and Chinese automakers this year—the most it has everreceived from unaffiliated firms. Mobis is to supply a US carmaker with pickup chassismodules and DCSD and ICS electronics, and China’s Geely with audio amplifiers.
Mobis has historically generated more than 90% of its sales from HMC and Kia Motorsand has been greatly affected by its clients’ earnings performances. We estimate that theoverseas orders will translate into annual sales of KRW1t (3% of its 2016 total) from 2019.
The official founding of the JV is planned for the second half of this year. Hella has already been engaged in a JV for lighting systems with BHAP since 2014.
More importantly, they demonstrate that the company has the ability to diversify itscustomer base and make its earnings more stable.
"China is one of the fastest growing automotive markets in the world. Because of automotive market trends such as autonomous driving, digitalization and electrification, we expect a continuously increasing demand for our electronic components," said Hella CEO Dr. Rolf Breidenbach. "With BHAP we have a reliable partner by our side who will enable us to serve the demand in an optimal way and with whom we have already cooperated in the past with the utmost confidence."
Hella CEO Dr. Rolf Breidenbach
"This new joint venture profits from integrating both the market access of the BAIC group and the technological expertise of Hella in the field of sophisticated electronics components," said Cai Suping, chairman of BHAP. "The cooperation between Hella and BHAP in the field of electronics is an important part of the strategy for BHAP. This way, we will further enhance our internationalization and strengthen the production and development capabilities in order to become a global automotive supplier."