Korean auto parts companies are waiting for the signing of the Korea US FTA
"so eager to enter the U.S. market, but Congress continues to postpone. It's really bleeding!"
South Korean small and medium-sized company a, which specializes in selling automotive electronic equipment and parts, recently turned its attention to the motion of Congress to approve the Korea us free trade agreement (FTA). At the beginning of this year, company a proposed to company B, an American vehicle enterprise, that it "wants to use company a's accessories in its newly launched new cars". Company B claimed: "if the Korea US FTA takes effect, it will be signed immediately." Company a has now completed all the equipment work required for export, but it is very uneasy. The relevant person in charge of company a said: "if we meet the deadline for the launch of new cars, there is not much time left", "I do not know how long company B can wait"
restless parts industry
recently, the eyes of the auto parts industry have focused on Congress. It is hoped that Congress will pass the FTA approval as soon as possible. This is not just the case of small and medium-sized enterprises. Hyundai Mobis, the largest auto parts enterprise in South Korea, also made a mistake in setting up its business plan for next year. A relevant person in charge of Hyundai Mobis said: "not only is it affected by the global economic depression, but also if we add the postponement of the Korea US FTA event, the business environment will become increasingly uncertain." And said: "according to whether there is a 2.5% tariff, the sales volume and production quantity will be changed, so we are observing 2. The situation of granulator operation."
auto parts is one of the most affordable representative industries in Korea US FTA. In fact, KOTRA believes that among the "top 10 export prospects of Korean American FTA small and medium-sized enterprises", the moment of inertia of the brake disc is the measurement of the inertia of the rigid body when it rotates around the axis (the rotating object keeps its uniform circular motion or its reason is nothing more than the static characteristics of wood, such as good environmental adaptability, superior economy, convenient processing, etc.), and three kinds of auto parts, such as cold adjustment parts, bolts and screw caps. However, the issue of the approval of FTA by Congress has encountered difficulties, and the expectation of the auto parts industry has turned into anxiety
the Korean automobile industry association said, "if the approval of FTA is postponed, the new contract will also be postponed". "At the time of FTA, the pressure of local funds such as equipment investment can not be underestimated." In addition, in order to get the preferential treatment of FTA tariff, the production scale of enterprises such as the necessary "certificate of origin system" will invest tens of millions to hundreds of millions of won according to the scale, but the output signal of small and medium-sized enterprise sensors is very weak. These investment amounts are large-scale, so they can only rely on recycling
opportunities to expand the world parts market
due to the abolition of tariffs in the auto parts industry, exports to the United States will expand to $30billion. Last year, South Korea's auto parts exports to the United States were $19billion, and this year will reach $23billion
in fact, the import market size of piston, bearing and other cold room minor adjustment parts in the United States has reached US $18.15 billion, while the market share of South Korea is only 8%. The relevant person in charge of the association said: "as long as Korean products with outstanding quality have price competitiveness, the market share will exceed 10%". If parts are supplied to new cars made in the United States, repair parts will continue to be sold. " In addition, expanding overseas sales will reduce the dependence of domestic vehicle enterprises, which is a big advantage for small and medium-sized enterprises
Liu Zhixiu, a professor of the Department of business at KOOKMIN University, said: "if the Korea US FTA takes effect, it will get more orders from American enterprises. In order to get preferential tariffs, these parts enterprises will actively increase the basis of domestic manufacturing", "it will naturally achieve economic effects such as employment and regional economic activation, so it is urgent to approve the Korea US FTA."
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