BUSINESS

Majority of auto part makers in North Jeolla seek switch to EV business: survey

By Kim Da-sol
  • Published : Jun 7, 2019 - 14:07
  • Updated : Jun 7, 2019 - 14:07

Around 82 percent of the Korean automobile parts makers in North Jeolla Province said they were seeking to switch to making electronic vehicle parts, a survey showed Friday. 

According to the survey conducted by Korea SMEs and Startups Agency on 403 auto components companies and subcontractors for General Motors Korea in North Jeolla Province, 82.6 percent said they were seeking to transfer their business to EV-parts production, amid dwindling plant operations in their region.

GM Korea's assembly plant in Gunsan, North Jeolla Province (Yonhap)

Last year, GM Korea shut down its assembly plant in Gunsan, North Jeolla Province, for restructuring.

GM Korea had accounted for 68.1 percent of the city’s total production during its heyday, manufacturing 6.2 trillion won worth of products until 2015 when its output fell to 2.54 trillion won or 25.9 percent of the city’s production. 

The survey showed that only 23.8 percent of auto parts makers in North Jeolla Province said their factory operation rate remained above 70 percent. 

Regarding concerns about switching to EV manufacturing, 40.8 percent of the companies said they need to invest in facilities, while 32.4 percent said the demand for EVs was not yet guaranteed. Around 21 percent said additional technology development was needed. 

Companies that showed no interest in transferring to EV business cited lack of relevance (26.7 percent) and shortage of funds and technology (20 percent) as reasons.

By Kim Da-sol (ddd@heraldcorp.com)


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