28/10/2009
Volkswagen shops for Korean parts
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Volkswagen Group parts buyers will attend Korea Trade-Investment Promotion Agency s auto parts export consultation session in Seoul today.Officials from 25 local parts makers including Mando Corp. and LG Hausys will meet with Volkswagen buyers for five types of components including electrical and interior components, KOTRA said.According to KOTRA officials, Volkswagen Group sending buyers overseas instead of inviting parts makers to its headquarters in Germany is an exceptional move that is thought to be part of the carmaker s cost cutting strategies.According to industry sources, Volkswagen s parts purchases last year amounted to 74.5 billion euros (110.9 billion Dollars), of which 52 percent were bought from sources outside of Germany.The KOTRA also said that the change in Volkswagen's purchasing process could also indicate that the German giant is looking to use more Korean-made parts.In addition, Volkswagen, which plans to double the proportion of its output accounted for by facilities in Asia by 2018, is said to prefer Korean-made parts as they are of better quality than Chinese products but cheaper than Japanese parts.
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