Hyosung increases the supply of car carpets to the Big 3 motor companies in the U.S.
Hyosung announced on the 5th that it would kick into gear its plan to target the U.S. market ----- the world’s largest automotive market ----- by tripling its annual supply of car carpets (also known as car mats or option mats) to GM, the world’s biggest motor company .
With car carpets that are at least twice as light as the products of global competitors and that feature improved car silence with excellent sound-absorbing performance, Hyosung has secured the top spot in the Korean car carpet market. The company now supplies car carpets to Hyundai-Kia Motors in the U.S., the first step in its global market expansion. In 2013, Hyosung began to supply car carpets to GM, significantly increasing the amount from 170,000㎡ to 630,000㎡ in last year alone.
“Under the vision of ‘Human Safety & Comfort Solution Provider,’ Hyosung’s Industrial Materials PG is doing a good job as a pillar of exports with many of the world’s top items in auto manufacturing materials, such as tire cords, air bag materials and seatbelt yarn,” said Cho Hyun-sang, Vice-President of the Strategy Division and the Industrial Materials PG Head. “As we’ve already secured a bridgehead to expand into the U.S. market, the world’s largest automotive market, we’re planning to develop car carpets into products that represent the best of Korea.”
Hyosung is also planning to supply car carpets to Ford and Chrysler this year, increasing its supply to the Big 3 to 1 million ㎡ in 2014 and expanding its total market share in North America to 6.2%.
Hyosung has established a car carpet manufacturing plant in Decatur, Alabama, which leverages Hyosung's cost and quality competitiveness through vertical integration in Korea, which means it handles everything from nylon chips (raw material of carpets) and nylon yarn (intermediary good) through to carpets (the finished product). With its local production system, Hyosung has secured a stable supply capacity in volume orders, winning good points from the Big 3 as a result.
Hyosung is acknowledged by world-renowned motor companies for its quality thanks to the knowhow and technologies it has built up over 30 years of specialized carpet production since 1979, when it first started with the prestigious Swan Carpet brand familiar to Koreans. With price competitiveness from its integrated production system, Hyosung is planning to expand the market share of car carpets in North America up to 12% by 2018.
