Korea’s Auto Parts are in the Heart of Nissan
Korea’s Auto Parts are in the Heart of Nissan
  • Korea IT Times
  • 승인 2010.06.18 10:14
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Korea Autoparts Plaza in Nissan 2010
On June 17, the Nissan Technical Center, Atsugi in Japan was crowded with official purchase partners including Nissan Motors people from the early morning. Because of that KOTRA and Nissan Motor Co. held the first 'Korea Autoparts Plaza in Nissan 2010.'


At this fair, 200 people from 69 Korean companies and more than 1,000 Nissan and partner buyers attended and deployed active counseling. The Nissan Technical Center in Atsugi, so-called Nissan's brain, is integrated in Research and Development (R & D), design and procurement functions.

While Nissan has been interested in the 'Korea Autoparts Plaza,' which KOTRA has held from last year to support direct marketing between Korea automotive parts companies and Japan automotive companies, they held this type of consultation fair with Korean auto parks companies for the first time.

LG Howe system, Kolon, PyeongHwa Automotive and LS Cable were present and many other domestic firms showed a lot of interest in Nissan's global procurement expansion. This Auto Parts Exhibition Parts was the largest KOTRA has held.

The main reason Japanese automakers like Nissan showed their interest in Korean auto parts, unlike the past, is because of the "cost."  Indeed, Japan's Big 3 (Toyota, Nissan and Honda) posted the worst record last year due to higher proportion of U.S. sales and vulnerable business structures with the exchange rate. Nissan also was disastrously defeated, a 23 million yen loss the first time since President Carlos Ghosn's inauguration. Sales revenue decreased sharply, but the manufacturing cost of sales is not any less, so a proportion of sales were growing. And as the small car based market is emerging, cost reduction is even more urgent necessity for survival.

An official from Nissan said, "Now the time is over when the quality is good, delivery is available, or once you sign a contracts with automakers, then the long-term supply is possible. Today, fierce competition begins which determined by total procurement with Quality, Cost, Delivery, Development and Management. It will be painful to challenge automotive parts manufacturers in Japan for Korea since they have to compete with Korea and China."

Cho Hwan-eik, President of KOTRA, attended the opening ceremony and said, " Korea supplies with competitive prices with client's needs at the forefront, to respond quickly and this is faithful evidence that we faithfully stick to basics such as R & D and production management." And he continued, "the Japanese car industry knows well that the Korean automobile maker's remarkable growth is followed by the great suppliers. And since Nissan is trying to expand the rate of overseas procurements for cost savings, Nissan is going to be a good partner to advance the industry in Japan and Europe."


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