24 May, 2010 – Hyundai Wia, a Korea-based powertrain company affiliated to Hyundai Motor Group, and Magna Powertrain, a Canada-based operating unit of Magna International Inc., announced the commencement of production at their new joint venture plant located in Asan, Chungcheongnamdo, South Korea.
At a grand opening ceremony held today, WIA and Magna Powertrain officially opened the new facility which started development in August of 2008. All-wheel-drive (AWD) couplings will be produced at the new plant for Hyundai Motor Group’s global markets, starting with Kia’s new Sportage SUV. The total annual production of the AWD-coupling is approximately 600,000 units.
“The Wia Magna Powertrain partnership combines the expertise of both companies to become a technology leader for the global market,” said Mr. Lheem, CEO of Hyundai Wia. "We look forward to continued cooperation and innovation to provide our customers with all-wheel-drive products of the highest quality."
“This joint venture leverages the strengths of two great companies to deliver global powertrain solutions to Hyundai Motor Group,” said Jake Hirsch, President of Magna Powertrain. “Additionally, it strategically positions both companies for global growth in the AWD segment.”
Background
In January 2009, Hyundai Wia and Magna Powertrain announced the formation of a 50/50 joint venture, which included the establishment of a new plant. Both companies signed a Memorandum of Understanding in June 2008. Construction started in August 2008 and was expected to be completed by early 2010.
About Hyundai Wia
As the very first company in Korea to produce one million units of automotive transmissions in 1993, Hyundai Wia (www.hyundai-wia.co.kr) is one of the major automobile part suppliers of Hyundai Motor Group, the 5th largest automakers in the world. Hyundai Motor Group has produced 3,961,629 automobiles throughout the world (467,000 of Hyundai Motors, and 305,473 of KIA Motors in the United States alone), rising to this remarkable sales volume within eight years and exceeding other global automakers such as Fiat, Chrysler, PSA/Peugeot, Nissan, and Honda. (Source: Automotive News 2008, Global Data Book)
With seven factories worldwide, Hyundai Wia has built a solid foundation in their automotive business where they design, develop and manufacture motor vehicle components from C.V.Joint, transmissions and engines, primarily to supply to Hyundai and Kia Motors, and also to other domestic and foreign automakers. The launch of this joint venture in Korea will enhance their competitive edge in the global market both in terms of quality and price, with special commitment to their localization strategy where unlike in the past, fully assembled components were imported.
About Magna Powertrain
Magna Powertrain is a premier supplier for the global automotive industry with high capability in powertrain design, development, testing and manufacturing. In supplying entire systems or individual components, systems integration is what sets this company apart from their competitors. Magna International was established in Korea in 1999, and today has seven plants in Korea including two fully owned plants, a plant through the joint venture with Dae Yee and four plants through a joint venture with Shin Young Metal. The addition of this eighth plant would further strengthen Magna’s position to serve Korean customers and their operations around the world.
About Magna International
Magna International (www.magna.com) is the most diversified automotive supplier in the world. They design, develop and manufacture automotive systems, assemble modules, components and vehicles with high-tech engineering skills, primarily for original equipment manufacturers of automobiles and light trucks in North America, Europe, Asia, South America and Africa. They are capable of designing, engineering, testing and manufacturing of automotive interior systems; seating systems; closure systems; metal body and structural systems; visual systems; electronic systems; exterior systems; powertrain systems; roof systems; as well as complete vehicle engineering and assembly.
Magna has approximately 74,000 employees in 240 manufacturing operations, 76 product development, engineering and sales centers in 25 countries.