European auto makers all out to “seize Korean parts”
The BMW Group’s increased purchase of Korean parts is noteworthy in that it recognizes the competitiveness of Korean companies like Samsung and LG in next-generation environment-friendly cars and electric & electronic parts. This is common to all leading European auto makers like the Daimler Group and the Volkswagen Group as well as the BMW Group.
The Daimler Group, which Mercedes-Benz belongs to, is also continuously purchasing increasing quantities of Korean parts. Having established a parts purchasing organization in Korea back in 2004, the Daimler Group is planning to purchase Korean parts worth €250 million this year. Next year the volume is expected to rise to more than €300 million. The Korean parts purchased by this company are supplied to the global production plants of the Daimler Group in North America, South America, China, India and Japan as well as in Europe.
“We already have a partnership with more than Korean parts makers in terms of development and procurement,” said Alexander Moeller, vice-president of Daimler Truck Korea. “Still a great deal of them are used in the trucks of the Daimler Group, but an increasing number of Korean parts are installed in Mercedes-Benz passenger cars.”
The increasing exports of Korean automotive parts to Europe are credited to the improved competitiveness of Korean electronic parts makers with focus on Samsung and LG, and the enhanced price competitiveness attributable to the FTA.
“After the conclusion of the Korea-EU FTA, the exports of automotive parts to Europe went up 15%,” said Kim Moo-han, senior executive managing director of the Korea International Trade Association. “The synergies between European auto makers and Korean parts makers in the fields of next-generation environment-friendly cars and smart cars are expected to be huge.”
Reference: http://autowini.com/en/community/localMarket-view.do?i_sRecord=FB201311210000502744
Reference: ET News.com
