May 25, 2011 10:05 Asia/Seoul Time Zone
Domestic Parts Makers Explore Opportunities in Global Markets with GM Korea
  • - Will establish export support organization
    - Will create shared growth system
SEOUL--(Korea Newswire) May 25, 2011 -- GM Korea Company is strengthening its support of domestic auto parts makers to assist them in their overseas expansion. This follows the signing of the Agreement on Shared Growth and Fair Trade on May 4, which established a future-oriented partnership for the automaker and its suppliers.

GM Korea will establish an export support organization (032-520-1942). The automaker will assign staff to help domestic parts makers explore opportunities globally and promote domestic suppliers within GM by setting up one-on-one meetings with parts buyers around the globe that are difficult to contact directly.

In addition, GM Korea plans to expand the number and scope of its overseas parts exhibitions, which have introduced domestic suppliers to GM’s global operations. The exhibitions will be expanded from five countries including China, the U.S., Germany and Russia to include Thailand, Brazil and Egypt. At the same time, the number of consultation sessions during each exhibition will be increased from an average of 150 to more than 200.

The mutual growth that GM Korea is pursuing will initially support suppliers that are seeking opportunities in free-trade-agreement-partner countries, while strengthening the competitiveness of suppliers overall by expanding quality management training. GM Korea will carry out effective, strategic support to increase sales of domestic suppliers through collaboration and joint investment at GM operations in emerging markets such as Uzbekistan, Thailand, Brazil, Egypt and South Africa.

“Our support of the entry of competitive Korean suppliers into new markets overseas will increase trade and investment and promote the shared sustainable growth of both GM and our suppliers,” said GM Korea Purchasing Vice President M. Venkatram. “As GM Korea’s support and suppliers’ voluntary efforts to enhance their global competitiveness continue, more domestic suppliers will be able to find new business opportunities in global markets where our company has operations such as Russia, China, India, Thailand, Uzbekistan, Indonesia and Australia.”

GM Korea promised to set up a department for shared growth and an internal auditing committee, to support KRW 101.3 billion with lump sum payment in R&D and Tools for ensuring the financial soundness of suppliers. It also agreed to implement a Price Escalation/De-escalation system for material costs in the Agreement on Shared Growth and Fair Trade. In addition, GM Korea said it would expand its training programs to include vocational training, safety and health education, and guidance to enhance the competitiveness of suppliers.

Meanwhile, the status of Korean suppliers within GM has been enhanced as GM Korea has served as the company’s global mini and small car development base. GM Korea’s continued growth has contributed to the growth of domestic suppliers. The number of domestic suppliers that export to GM increased to 233 in 2010 from 16 in 2002. Over the past five years, Korean suppliers have provided about $18.7 billion worth of parts and components to GM’s global operations.

Seventeen domestic suppliers were named General Motors Supplier of the Year in March, accounting for over 20 percent of the 82 award winners.

About GM Korea Company
GM Korea is Korea‘s third-largest automotive company, and represents one of GM’s largest manufacturing, design and technology hubs. It operates five manufacturing facilities in Korea as well as an assembly facility in Vietnam. In 2010, GM Korea sold domestically and exported more than 1.84 million vehicles, including CKD products, primarily under the Chevrolet brand. GM Korea produces one out of every four Chevrolets sold worldwide. It provides market- and brand-specific vehicle kits for assembly at GM facilities in China, Uzbekistan, Mexico, India, Colombia, Russia and other countries. Vehicles and kits from GM Korea are offered in more than 150 markets on six continents. Additional information on GM Korea and its products can be found on the company’s website at media.gmkorea.com.
  • Media Contact
  • GM Korea
    82-2-755-4043
Korea Newswire distributes press releases to thousands of news media, internet portals across Korea and around the world.
submit a press release »