Fifty-two domestic auto parts companies, with support from KOTRA and Hyundai Motor and Kia, sought to enter the supply chains of Ford in the United States and Stellantis.
Korea Trade-Investment Promotion Agency (KOTRA) said on the 19th that it hosted the "Ford-Korean parts suppliers cooperation day" and the "Stellantis innovation tech show" in Detroit, Michigan, on the 14th-16th (local time). The events, held at the headquarters of Ford and Stellantis, drew 52 domestic auto parts companies, including 44 suppliers to Hyundai Motor and Kia.
The events were the first joint project under the "MOU on cooperation to support overseas expansion of domestic auto parts companies," which KOTRA and Hyundai Motor and Kia signed on the 8th. They were arranged to connect new buyers for domestic parts makers whose export conditions have worsened due to U.S. tariffs, the shift to electric vehicles, and expanded localization by automakers. Korea's auto parts exports totaled $21.1 billion last year, down 6.0% from the previous year. Provisional exports for the first half of this year were $10.03 billion, down 6.3% on-year.
KOTRA's Detroit office identified suitable domestic companies after securing 37 requested parts and supplier requirements from Ford and Stellantis early this year. On the 14th, 43 companies, including 35 suppliers to Hyundai Motor and Kia, took part in the Ford event and showcased powertrains; body, interior and exterior materials; chassis; and electric components. On the 16th, 23 suppliers to Hyundai Motor and Kia joined the Stellantis event to present parts and related technologies with cost-saving effects.
The events featured briefings on Ford and Stellantis purchasing policies, product displays, one-on-one consultations, and networking sessions. Executives and purchasing and engineering officials at the automakers reviewed the technical efficacy and mass-production potential of domestic suppliers' products.
When selecting new suppliers, automakers cited innovative technology, supply chain stability, and local production capability as key conditions. A global purchasing official at Ford said, "Companies that have production plants within the United States-Mexico-Canada Agreement (USMCA) region have an advantage." A Stellantis purchasing official emphasized technology and pricing, saying, "The key is cost reduction through innovative technology."
KOTRA assessed that global automakers' supplier selection criteria are shifting to value not only supply prices but also technological prowess and supply stability. It noted that quality improvement and productivity gains using innovative technology lead to long-term cost competitiveness, and that the importance of stable delivery capabilities has grown after semiconductor shortages and tariff risks during the pandemic.
A Ford attendee said, "We know the quality and technological capabilities of Korean parts suppliers are excellent," adding, "We hope to verify their technology through direct communication and increase potential cooperation." A Stellantis attendee also expected that cooperation with domestic suppliers would serve as a chance to identify the innovative technologies needed to advance the mid- to long-term strategy "Fastrack 2030" for 2026–2030.
KOTRA plans to hold export exhibitions and consultations tailored to local automakers' demand in Germany, Japan, and Brazil in the second half of this year. Kang Kyung-sung, president of KOTRA, said, "We will leverage our overseas network to identify the needs of global automakers and, in cooperation with Hyundai Motor and Kia, support expanding domestic parts corporations' entry into global supply chains."