Korean supplier to build door modules alone in Czech Rep.

PRAGUE -- Korean Pyeong Hwa Automotive won a second central European parts contract, but lost its American partner for the new deal.

Pyeong Hwa was selected by Hyundai to supply door modules for the future factory in Nosovice, Czech Republic. But in the Czech Republic, it will build and run its factory without a partner.

“We said no, but gave them a contact for a person that could help them,” said ArvinMeritor’s Deborah deBoer Henderson, vice president and general manager of LVS door systems.

Pyeong Hwa builds door modules for South Korea's Hyundai group: both Kia Motors and Hyundai brands. Pyeong Hwa followed Kia Motors into Slovakia, establishing a 49/51 percent joint venture with ArvinMeritor in Kysucke Nove Mesto, 20km north of the Kia factory in Zilina.

ArvinMeritor and Pyeong Hwa have partnered before the Slovak deal. For example, they have worked together to supply door modules for Hyundai's Korean production of the Sante Fe, Sonata and Grandeur models. In the United States in 2005, ArvinMeritor opened a final assembly site near Montgomery, Alabama, to make door modules for Hyundai’s Santa Fe and Sonata models.

Lyle Frink
Automotive News Europe
August 28, 2007