Front-End Module Supplier HBPO Expands in N. America

Germany’s HBPO GmbH plans to open two more plants in Mexico by the end of 2018 and is increasing production at several other North American facilities as demand for the company’s front-end modules grows.

HBPO—a joint venture equally owned by Hella KGA, Mahle and Plastic Omnium—says it will make nearly 60% more (1.4 million units) front-end modules in North America this year than it did in 2016. The company delivered some 5.3 million front-end modules worldwide last year.

The new manufacturing facilities in Aguascalientes and Saltillo, Mexico, will supply unnamed nearby customer plants on a just-in-sequence basis within three hours of an order. Nissan has a plant in Aguascalientes and Fiat Chrysler has one in Saltillo.

In addition, HBPO recently added third shifts at its Mexican factories in San Jose Chiapa and Toluca to support increased demand from Audi and Fiat Chrysler, respectively. The company has 25 manufacturing plants worldwide, including two other North American facilities in Puebla, Mexico, and Windsor, Ontario.

HBPO estimates about one-third of light vehicles produced worldwide are built with preassembled front-end modules, which include headlamps, engine cooling, structural components and an increasing array of electronics. The company expects more vehicles to switch to such assemblies as carmakers continue to assign design, engineering and manufacturing responsibilities to suppliers.

HBPO also sees opportunities to supply other types of modules. The company began producing center consoles last year and it will begin supplying a cockpit module to an unnamed European carmaker in 2019.