Korean Partsmakers Follow Delphi Lead, Prepare Global Assault

Automotive Industries,  April, 1999  by Paul Fisher

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Hyundai, Korea's number one automaker, says it wants to follow the example of General Motors/Delphi and Ford/Visteon by completely separating its vehicle assembly and parts production operations. That will enable the components operation to push hard for overseas business.

Hyundai Precision Industry will absorb Kia's component operations, including Kia Precision Works, and put all other Hyundai parts firms under its direct control. According to Hyundai officials at the recent Geneva Auto Show, the company plans a comprehensive part-sharing program with Kia vehicles over the next few years. R&D chief Lee Choong-koo said the parts sharing will extend from fasteners to major systems and modules.

Daewoo is also trying consolidate. Daewoo Heavy Industries is to sell its automotive division to Daewoo Motor for $646 million. The next step, officials say, is to follow Hyundai's lead and consolidate parts production.

COPYRIGHT 1999 Cahners Publishing Company
COPYRIGHT 2000 Gale Group