A 520 Bil. Won Contract with Volkswagen
Hyundai Glovis has signed a five-year sea transportation contract worth about 520 billion won with Volkswagen Group, Europe's largest automaker, the company announced on July 2.
Under the contract, Hyundai Glovis will exclusively transport vehicles produced by all brands of Volkswagen Group, including Volkswagen, Audi, Porsche, and Bentley, from Europe to China. The 520-billion-won contract is Hyundai Glovis’ largest ever deal with a global carmaker except its sister companies Hyundai Motor Co. and Kia Motors.
Hyundai Glovis has signed the contract with Volkswagen Konzernlogistik, a logistics subsidiary of Volkswagen Group. The contract covers five years, three basic years plus an optional two-year extension.
Hyundai Glovis posted 2.51 trillion won in sales from its vehicle shipping business in 2019 with about 53 percent of the sales coming from companies other than Hyundai and Kia. The latest deal is expected to boost the share of its sales not related to Hyundai and Kia by 10 percentage points.
Meanwhile, the global car carrier market is shared by Japanese shipping companies (about 50 percent), European shipping companies (about 30 percent) and Hyundai Glovis (about 18 percent).