Home / Motor/ Hyundai Motor says reviews investing in contract manufacturing

Hyundai Motor says reviews investing in contract manufacturing


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 13 June 2018 09:34


Seoul (Reuters): Hyundai Motor on Monday conducted due diligence on a contract car manufacturing plant site for possible investment, as the South Korean firm seeks ways to cut costs and conserve capital to develop new technologies such as electric vehicles.

The move follows Hyundai’s announcement on Friday that it had submitted a letter of intent to consider investing in the plant proposed by the city of Gwangju in the southwest of the country.

Contract manufacturing has been largely used by electronics industry - Apple Inc outsources production of the bulk of iPhones and other devices to Taiwan’s Foxconn - and established automakers are gradually embracing contractors too in a bid to save costs. Canadian auto parts supplier Magna International Inc produces BMW and other cars, and Hyundai’s affiliate Kia Motors outsources the production of its Picanto mini car. But Hyundai’s investment, if finalised, would mark a rare expansion by major automakers into contract manufacturing. “Even though the investment is confirmed, we are considering outsourcing and securing supplies of an economical new car by investing in a non-controlling stake without participating in the management of the new corporation,” Hyundai said in a statement.

 


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Identifying traitors: I cannot wait until Dr. Padeniya presents his point scheme

Tuesday, 21 August 2018

Cause for excitement I am excited! A way of identifying and measuring a traitor is soon to be unveiled; by no less than the President of the GMOA! Hasn’t he also qualified in some department of neurology? All the more reason to justify my excitemen


The evils of translocating wild elephants

Tuesday, 21 August 2018

The subject of translocating wild elephants has been a much-debated topic recently, after the Department of Wildlife Conservation (DWLC), acting on the orders of the Minster for Wildlife, wanted to move the only two wild elephants habituating the Sin


Climate scientists cheating us to a $ 12 b/year economic loss in 2050

Monday, 20 August 2018

Local news media carried the disturbing pronouncement by World Bank economists to the effect that Sri Lanka will become an extremely hot territory with 30C temperature rise and $ 12 billion per year economic loss by 2050.


Singapore miracle – How SL could benefit from trade with Singapore

Monday, 20 August 2018

According to a media report released by President’s Media Division, a committee of experts has been appointed by the President to examine and report on ‘the practical impact and use of the proposed officer policy guidelines and recommendations on


Columnists More