Renault, Volkswagen Turning to Korean Parts Makers

The Renault-Nissan Alliance will increase the number of car parts suppliers from Korea from 25 to as high as 100 by 2013, news reports said yesterday. Volkswagen will also raise the number of Korean car parts makers tenfold.

Amid the global economic crisis, global car manufacturers are scrambling to lower costs to achieve price competitiveness, and Korean car parts makers are catering to their needs with less expensive but high-quality products.

Christophe de Charentenay, managing director of Renault Samsung Motors Corp., said, “We have singled out 25 of 158 partner companies to get car parts from them,” adding, “Renault-Nissan will increase the number to between 75 and 100 by 2013.”

The company has shown interest in Korean car parts makers, which are ahead in rechargeable car battery technology, since Renault announced that it will mass produce electric cars by 2011.

The carmaker will also secure from Korea key components for electric cars, such as batteries and motors.

Volkswagen purchasing agents also visited Korea in October to hold a presentation for 25 domestic car parts manufacturers to procure key components. This was the first time for the German carmaker to hold such an event outside of Germany.

sukim@donga.com