South Korean manufacturing company Hyundai Mobis (MOBIS) is recognized globally as a leading supplier in the automotive industry.
After being awarded a sizeable contract for a new automotive program, MOBIS realized the need for a timely expansion to a strategically located manufacturing facility.
During a previous expansion in 2013, MOBIS commissioned Plante Moran Realpoint (PMR), formerly Plante Moran Cresa, to provide site location analysis, real estate procurement, and incentive negotiations. The project resulted in the acquisition of a 167,000-square-foot facility in Detroit, Mich., with over $6 million saved in incentives. Due to the success of the prior venture, MOBIS re-engaged PMR to guide its new facility expansion.
At the onset of the engagement, PMR conducted a comprehensive site selection analysis in the Metro Detroit area, evaluating more than 50 potential locations. Included in the analysis was the review of logistical studies to assess whether facilities could meet MOBIS’s just-in-time sequencing requirements. PMR and MOBIS coordinated simulations for its delivery operations and tracked the time elapsed in transit to key client locations. With a strict timeline of expansion, PMR also qualified sites based on their readiness for move-in and ability to accommodate large-scale production.
With the guidance provided by PMR, MOBIS decided on an optimal site in Highland Park, Mich. PMR then negotiated the details of the transaction, which included the landlord selecting a general contractor to construct a new 300,000-square-foot facility. PMR was able to convey favorable lease terms with the owner to mitigate some of the real estate costs.
Throughout construction, PMR served as owner’s representative, coordinating the efforts of contracted workers to help reduce change order risks and facilitate a timely and on-budget project completion. PMR leveraged its construction knowledge to provide valuable insight in the procurement of furniture, fixtures, and equipment (FF&E) and the installation of safety and security systems throughout the building.
As a result of working with PMR, MOBIS was able to expand to a facility exactly suited to its requirements. With an aggressive timetable for completion, and additional schedule complexities in light of the pandemic, PMR ensured that the new facility was completed according to the original deadline. The new facility opened its doors in June 2021.
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