CBI "Expanding Parts Supply to North and South American Automakers... Rapid Growth in Core Business"

[Asia Economy Reporter Jang Hyowon] CBI announced on the 22nd that it will continue its sales growth by expanding the supply volume of parts to North and South American finished car manufacturers and major customers.

The company stated, "CBI is entering a transition to an exclusive supply structure with BorgWarner Global in North America, and while maintaining the exclusive supply structure to South American finished car manufacturer GM, sales are expected to increase."

CBI is expected to supply parts for about 2 million units to BorgWarner Global this year alone, generating annual sales of 7.4 billion KRW. This represents an approximately 20% increase compared to 2021. In 2023, the supply volume is projected to increase to 2.5 million units, with sales reaching 8.2 billion KRW. This is about a 10% increase compared to the 2022 forecast.

CBI has fully absorbed 100% of the global volume of tensioner bodies for Chrysler Pentastar engines supplied to BorgWarner Global, one of its major customers, and has started full-scale mass production, indicating that sales growth will continue.

In addition to BorgWarner Global, CBI supplies transmission parts for passenger cars and pickup trucks on the global emerging market platform and the global small vehicle platform to South American GM Global. For 2023, sales are expected to reach approximately 5 billion KRW, a 60% increase compared to this year.

The South American market experienced a decline in new vehicle production and parts market size due to the economic downturn caused by the COVID-19 pandemic. However, as the pandemic subsides, lockdowns ease, and raw material prices rise, Brazil's economy is recovering, leading to a sharp rebound in automobile demand. Notably, the South American market is expected to grow at less than 5% annually until 2027, and compared to other countries, the adoption of technologies such as electric and hybrid vehicles is relatively delayed.

A CBI official stated, "By exclusively supplying engine and transmission parts applying our proprietary expert air technology to overseas markets such as BorgWarner Global and GM Global, we are absorbing 100% of the global volume. Along with the clear growth trend in the South American market, demand for related parts is reaching an all-time high, so full operation of production lines and continued sales growth are expected." He added, "As a global strong small and medium enterprise, we plan to strategically prepare for domestic economic downturns and low growth trends, accelerate growth engines through diversified overseas sales channels and increased exports via aggressive sales activities."