Hyundai Glovis clinches exclusive deal transporting Volkswagen cars

Hyundai Glovis, a logistics unit of Hyundai Motor Group, said Thursday that it has clinched an exclusive five-year contract with Volkswagen Konzernlogistik, which deals in the logistics of European carmaker Volkswagen Group, for transporting their cars from Europe to China. 

Volkswagen Konzernlogistik is based in Wolfsburg, Germany, and controls logistics, production and sales of vehicles from Volkswagen Group’s 12 finished car brands such as Volkswagen, Audi, Porsche and Bentley. 

This is the largest deal in scale clinched since the Korean company entered the vehicle transportation business in 2008. 

According to Hyundai Glovis, it will transport Volkswagen cars produced in Europe 10 times a month from Germany’s Bremerhaven Port and UK’s Southampton Port to China’s major ports of Shanghai, Xingang and Huangpu. 

The specific number of vehicles that will be transported will not be disclosed under the contract term, the company said. 

Last year, Hyundai Glovis recorded 2.5 trillion won ($2.08 billion) in sales for transporting finished cars on the sea.

“Despite hardships in the maritime shipping market due to the latest COVID-19 outbreak, we will continue to make active approach to global firms to step up as a world’s top logistics company that leads the car carrier market,” said a Hyundai Glovis official. 

By Kim Da-sol (ddd@heraldcorp.com)