Hyundai to Let Taiwan Auto-parts Suppliers Enter Supply Chain

Taipei, Jan. 20, 2006 (CENS)--Hyundai Motor Co., a leading South Korean carmaker, has decided to incorporate some Taiwan suppliers of automotive interior and electrical parts into its global supply chain, according to Huang Kuang-wu, president of Sanyang Industry Co., Ltd., the local maker of Hyundai car models.

Huang made the statement at an annual supplier conference, and he confirmed that Hyundai would send some staff to Taiwan this year to evaluate qualified suppliers' cost, capacity, quality, and manufacturing competitiveness. The first group of local auto-parts suppliers selected by Hyundai would be asked to ship parts and accessories for the Hyundai Matrix, Tucson, and Elantra passenger-car models in the initial stage at an annual volume of at least 100, 000 units, Huang said.

Shi H. Huang, chairman of Sanyang pointed out that his company produced and sold more than 23, 000 Hyundai cars in Taiwan last year, up from about 18, 000 units in 2004. The chairman claimed that his company aims to challenge an annual production goal of 30, 000 units this year.

Huang Kuang-wu explained that Sanyang has suggested Hyundai procure more Taiwan-made auto parts for higher cost competitiveness rather than cutting prices by 5% per year.

Hyundai is actively expanding its global reach, and has set up a joint venture project in Beijing targeting an annual production volume of 300, 000 units, Huang Kuang-wu said, so the Korean company needs more suppliers. He added that Hyundai has sent a group of officials to learn more about Taiwan's auto-parts line and about the island's manufacturing strengths.

According to Huang Kuang-wu, Sanyang has sent a list of qualified suppliers of automotive interior- and electrical-parts in Taiwan to Hyundai for reference.