Auto Parts Promotion
Korean auto parts manufacturers are winning the trust of Ford, which is well known for very meticulous quality control.
The Korea Trade-Investment Promotion Agency (KOTRA) and Ford held a global outsourcing conference in Dearborn, Michigan from June 9 to 10 (local time) with 33 auto parts makers invited from Korea. The conference was attended by many high-ranking executives in charge of purchasing at Ford, including global purchasing chief Hau Thai Tang. The conference was the first one held by Ford exclusively for Korean companies.
Both of the parties signed an MOU with each other there to open the same event in other regions around the world where Ford is running plants. “Korean auto parts manufacturers are famous for their dedicated efforts for price and quality competitiveness, innovation and efficiency,” said the vice president, adding, “We are hoping to work more closely together with not only the primary but also secondary and tertiary vendors in Korea.”
Ford purchases auto parts worth approximately US$90 billion a year. However, it has given very few opportunities to small firms in Korea, unlike GM. This is because Ford adheres to vertically-integrated parts supply systems similar to Toyota’s and has reduced the number of partner vendors from 3,300 to 1,350 between 2004 and 2011 for less burden on quality control. Besides, the number is slated to be cut down to 750 in the near future.
More than 130 companies had applied for the participation in the first global partnership event with Ford and the 33 participating companies had been picked out for their advanced technological strength and higher quality competitiveness.