S. Korean auto parts makers seek tie-ups in Europe: official

SEOUL, May 14 (Yonhap) -- South Korean auto parts companies are seeking strategic
tie-ups with European carmakers to overcome the current global economic slump, a
senior government official said Thursday.
Vice Knowledge Economy Minister Kim Young-hak said in a meeting with
representatives from the European Union Chamber of Commerce in Korea (EUCCK) that
expanding cooperation would be a win-win arrangement that could boost
competitiveness for both parties.
"Investments and close partnerships can exert a positive effect, with South
Korean parts companies being able to offer viable solutions to stem price hike
pressures felt by European carmakers," the official said.
He added that local parts makers could provide the high level of technology
required by companies aiming to expand into the eco-friendly vehicle market.
Foreign automakers have shown growing interest in buying South Korean parts and
components as local companies make strides to improve quality. The relative
weakness of the Korean won compared with the U.S. dollar, the Japanese yen and
the euro have also spurred talks on buying from South Korean companies.
Kim's remarks come as local parts makers, including Hyundai Mobis, Mando and a
number of small- and medium- sized enterprises have been hit hard by falling
sales in the worldwide auto market.
In April, South Korea's exports of car parts plunged 36.1 percent to US$890
million from just under $1.4 billion in the previous year. For the whole of this
year, outbound shipments of automotive parts and components nosedived 42.4
percent annually to $2.9 billion.
With sales to local and U.S. carmakers falling off due to the economic crisis,
parts manufacturers have been trying to expand into new overseas markets. Europe
is a very large, untapped market for South Korean companies that could provide a
valuable outlet for their products.
The gathering Thursday also allowed local and European companies to exchange
views on possible deals.
Representatives from Volkswagen, Daimler and Renault Samsung Motors all explained
their future purchasing and investment guidelines.
yonngong@yna.co.kr
(END)