Globalization in Korean Automobile Industry:Focusing on Location of Parts Suppliers
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概要
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Recently Hyundai has increased its presence in the world automobile industry by expanding overseas production. But, when an automobile producer expands into a foreign country, its productivity is decreased through increased transportation costs. Thus it is necessary for automobile producers to also take parts suppliers to the foreign country. In other words, location with parts suppliers matters.In this paper, to estimate the current growth of Hyundai and the Korean automobile industry in general, we analyzed the location of Korean parts suppliers in comparison with that of Japanese parts suppliers.The results are summarized as follows:1. Korean parts suppliers are concentrated in China, while Japanese parts suppliers are located close to their production centers in North America, Europe, and Asia.2. In North America and Europe, there is a large disparity between the number of Korean automobile producers' production plants and the number of their parts suppliers.3. In comparing the Hyundai Alabama plant and the Toyota Canada plant in North America, it can be seen that Toyota has 82 Japanese suppliers located nearby, while there are only 11 Korean suppliers around the Hyundai plant meaning that Toyota's local procurement rate of parts is higher than Hyundai's by 10-20%.4. In order to maintain growth, Hyundai must raise the rate of procurement of parts from already established local parts suppliers. This expansion of transactions with non-Korean parts suppliers would be accompanied by M & A or strategic alliances between Korean and non-Korean parts suppliers.
- 産業学会の論文
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