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GM to Import More Car Parts From Korea

Posted May. 07, 2009 08:23,   


Struggling U.S. auto giant General Motors yesterday said it will import more parts and components from Korean suppliers.

In its two-day event “GM-Korea Auto Parts Plaza 2009” in Detroit, GM held pre-arranged meetings with 39 Korean part suppliers. The event was co-hosted by GM and the Korea Trade-Investment Promotion Agency.

Held every year since 2006, the event was almost canceled this year by the trade agency due to GM’s financial difficulties. The American company, however, asked that the event go on as scheduled, saying, “When hardships arise, partnerships with suppliers is more important.”

Bo Anderson, GM group vice president in charge of global purchasing and supply chain, and the carmaker’s 200 engineers also took part in the event, closely watching Korean-made car parts.

At the opening ceremony, he said Korean car parts suppliers have become significant business partners for GM over the past three or four years.

Anderson said that in 2002, 16 Korean suppliers provided car parts worth 169 million U.S. dollars but last year, the numbers rose to 210 and 1.4 billion dollars, respectively.

INFAC Corp. President Choi Oh-gil, whose company began supplying car antennas to GM last year, said, “Our annual sales reached 120 billion won (94 million dollars). We’re scheduled to export five million dollars worth of car antennas to GM this year.”

“GM is well-known as a carmaker that doesn’t blindly stick to American-made car parts, but imports quality car parts from overseas suppliers.”

Cho Hwan-eik, president and CEO of the Korea Trade-Investment Promotion Agency, said, “GM is facing difficulty. But if Korea’s car parts manufacturers take advantage of GM’s problems as an opportunity to strengthen their partnership, they will reap future rewards.”