Car industry in crisis… “Spare part to be the solution”
Ye Jin Soo | jinye@ | 2018-03-15 11:29:26
"The first button to escape from the crisis of the crisis is the upgrading of the parts industry" is coming out from inside and outside the automobile industry as for the shrinking production of the Korean automobile industry. The automobile industry and experts point out that it is necessary to prepare three-dimensional measures because not only GM factory in Gunsan, Bupyeong and Changwon factories but also automobile parts makers such as Busan and Daegu area are walking around.
According to the automobile industry on March 14, worse-than-expected performance of the automobile industry has worsened, and Korean automobile parts makers are suffering from a decline in sales and a decline in utilization rate. Experts estimate that auto parts makers receive more than 50% of auto parts sales from suppliers, However, according to data from the Ministry of Commerce, Industry and Energy, exports of automobile parts fell by 4.2% in 2015 and -4.6% in 2016, and 9.5% As a result of the decline in sales of carmakers, component makers are continuing to reduce their manpower, rather than expanding technology development.
As a result of the Korea Automobile Co-operative Survey, Korea`s first GM supplier`s plant utilization rate fell to 50-70% in February, and sales fell 20-30% from the previous year. In addition to Korean partner companies, some Korean parts makers are experiencing difficulties due to lower sales and lower operating profit. In the case of A, Hyundai and Kia`s primary supplier, the operating margin fell to 2% last year from 5.8% in 2014. Some companies in the Daegu Seongseo Industrial Complex are also considering moving the plant to the surrounding area, where land prices are low, as the volume of orders will decrease due to deterioration in the domestic market.
An industry expert in the parts industry said, "The foundation of survival of some GM Korea 2 and 3 partner companies is threatened by refusing discounts on credit cards, managing loan limits, "We have to hurry to negotiate between the government and GM, and we must stop collecting loans so that parts companies can hold on to the financial sector."
According to the analysis of the Korea Automobile Manufacturers Association, it is argued that in order for the Korean automobile industry to enter the growth road again, it is urgent to raise the competitiveness of domestic parts makers in response to the development of future auto parts. According to the results of the US Automotive News, the Association said, "Of the global top 100 parts makers in 2016, Japan (28), the United States (22) and Germany (16) accounted for 66% Mobis. " In addition, Hyundai Mobis accounted for 1.8% of its R & D investment in sales, but Germany`s Bosch and Hyundai`s 9.5% and 8.8%, respectively. An automobile specialist who wanted to be anonymous said, "Since the high-cost structure and striking loss caused by the opposing labor-management relations of the finished car makers are transferred to the parts companies, domestic parts companies have no capacity to develop the technology. And the pursuit is accelerating. "
By Ye Jin Soo jinye@
[ copyright ⓒ The Digitaltimes ]
According to the automobile industry on March 14, worse-than-expected performance of the automobile industry has worsened, and Korean automobile parts makers are suffering from a decline in sales and a decline in utilization rate. Experts estimate that auto parts makers receive more than 50% of auto parts sales from suppliers, However, according to data from the Ministry of Commerce, Industry and Energy, exports of automobile parts fell by 4.2% in 2015 and -4.6% in 2016, and 9.5% As a result of the decline in sales of carmakers, component makers are continuing to reduce their manpower, rather than expanding technology development.
As a result of the Korea Automobile Co-operative Survey, Korea`s first GM supplier`s plant utilization rate fell to 50-70% in February, and sales fell 20-30% from the previous year. In addition to Korean partner companies, some Korean parts makers are experiencing difficulties due to lower sales and lower operating profit. In the case of A, Hyundai and Kia`s primary supplier, the operating margin fell to 2% last year from 5.8% in 2014. Some companies in the Daegu Seongseo Industrial Complex are also considering moving the plant to the surrounding area, where land prices are low, as the volume of orders will decrease due to deterioration in the domestic market.
An industry expert in the parts industry said, "The foundation of survival of some GM Korea 2 and 3 partner companies is threatened by refusing discounts on credit cards, managing loan limits, "We have to hurry to negotiate between the government and GM, and we must stop collecting loans so that parts companies can hold on to the financial sector."
According to the analysis of the Korea Automobile Manufacturers Association, it is argued that in order for the Korean automobile industry to enter the growth road again, it is urgent to raise the competitiveness of domestic parts makers in response to the development of future auto parts. According to the results of the US Automotive News, the Association said, "Of the global top 100 parts makers in 2016, Japan (28), the United States (22) and Germany (16) accounted for 66% Mobis. " In addition, Hyundai Mobis accounted for 1.8% of its R & D investment in sales, but Germany`s Bosch and Hyundai`s 9.5% and 8.8%, respectively. An automobile specialist who wanted to be anonymous said, "Since the high-cost structure and striking loss caused by the opposing labor-management relations of the finished car makers are transferred to the parts companies, domestic parts companies have no capacity to develop the technology. And the pursuit is accelerating. "
By Ye Jin Soo jinye@