Hyundai Glovis and Volkswagen signed a contract worth of $432.4 million to transport finished automobile from Europe to China.
Hyundai Glovis is a logistics arm of South Korea’s Hyundai Motor Group. With the new agreement, Glovis will handle Glovis will handle the transportation of Audi, Volkswagen, Porsche and Bentley-branded vehicles.
Glovis highly dependent on Hyundai Motor and its sister company Kia Motors. Company has announced the new contract as an exclusive deal. This is the largest secured shipping deal of Hyundai Glovis other than to the Hyundai Motor and its sister company Kia Motors. The new deal will create 10 shipments from Europe to China per month adding cargo to the routes which Glovis was struggling to fill up. Also, this will help to improve the efficiency and reduce the overall logistics costs of operation.
Hyundai Glovis said the contract has actually been in effect since Jan. 1, but the announcement was delayed due to negotiations that had to be made internally, according to Kang Sung-gon, a spokesperson for Hyundai Glovis.
Contract has signed for 5 years ending in December 2024
Hyundai Glovis “is grateful to Volkswagen Group for regarding highly of our transport capacity,” said a company spokesperson in a statement. “Based on knowledge on the vehicle transport operation, Hyundai Glovis]plans to provide a high-quality transport service.”
Glovis is keen on the growth potential of the used vehicle segment in China, the world’s largest car market. Yet the company has not published their affiliation on Volkswagen Group’s used vehicle sector.
Hyundai Glovis is a 18.2 trillion KRW worth company with more than 3.18 million completed vehicle shipping. Glovis Operate about 80 PCC (Pure Car Carrier) and PCTC (Pure Car and Truck Carrier).
The Volkswagen Group is one of the world’s leading automobile manufacturers and the largest carmaker in Europe having its headquarters in Wolfsburg, Germany. The company has 125 plants around the world. The Group comprises produce Volkswagen Passenger Cars, Audi, SEAT, SKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN.