Workers assembly chassis modules at Hyundai Mobis’ Hungary plant in Kecskemet. (Hyundai Mobis) Hyundai Mobis said Tuesday its newly operational plant in Hungary will supply chassis modules to Mercedes-Benz, expanding their partnership beyond North America.
Located in Kecskemet in central Hungary, the facility is Hyundai Mobis’ first European production base dedicated to global customers outside Hyundai Motor Group. It is the company’s fourth manufacturing site in the region after plants in the Czech Republic, Slovakia and Turkey.
The Hungary plant will mass-produce chassis modules for electric and hybrid vehicles, with flexible capacity to produce modules for internal combustion engine models if needed.
While Hyundai Mobis did not disclose the contract value, industry sources said the deal is significant given the scale of chassis module supply and Mercedes-Benz’s premium brand status.
The facility operates under a just-in-sequence production system, allowing Hyundai Mobis to receive real-time production schedules from the automaker and deliver modules in the exact sequence required for vehicle assembly, while quickly adjusting to changes in production plans.
The agreement builds on the companies’ existing partnership. Mercedes-Benz has sourced chassis modules for its North American models from Hyundai Mobis’ Alabama plant since 2022.
Hyundai Mobis’ expansion into Hungary comes as the country emerges as a key automotive and battery manufacturing hub in Eastern Europe, producing more than 500,000 vehicles annually and hosting production bases for global automakers and battery makers from Germany, China and South Korea.
To strengthen its presence in Europe — one of the world’s largest automotive markets and the second-largest EV hub — Hyundai Mobis is also building a battery system plant in Spain, which will become its fifth manufacturing site in the region.
As part of its long-term strategy, Hyundai Mobis aims to raise the share of revenue from global customers to 40 percent by 2033, expanding partnerships in North America, Europe and fast-growing markets such as China and India to reduce reliance on Hyundai Motor Group.
hyejin2@heraldcorp.com