Thriving Korean components maker Mando is firmly setting its sights on global markets, according to comments made by the company’s president and CEO to The Korea Herald. Mando is already saying that it is the first Korean auto-parts maker to supply components to all of the US Big Three carmakers – General Motors, Ford and DaimlerChrysler.
That milestone is symbolic of the company’s turnaround since it was declared bankrupt with huge debt in the wake of the 1997-1998 Asian financial crisis.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Its recovery has followed the recovery of Hyiundai-Kia, its major customer. But it has grown business outside of Korea too. The company now says that it has become the first Korean firm to supply key brake systems to the Big Three carmakers.
The Korea Herald reports that in 2001 alone, Mando obtained about $547 million in orders from GM, Ford and DaimlerChrysler for caliper brakes, drum brakes and steering systems. The report adds that negotiations for an additional $463 million in contracts are underway.
The report adds that AAM, the largest module supplier for GM, has selected Mando as the best supplier among its 500-odd primary subcontractors, as none of the 800,000 brakes supplied by Mando to GM last year were found to have defects.
“In order to further expand exports, Mando is to build a new integrated research and development centre south of Seoul in July to develop next-generation electronic brake systems, jointly with its existing technology centres in the United States and Europe,” president and chief executive officer Oh Sang-soo told The Korea Herald. “We are setting our sights on growing into a global auto-parts giant rivalling Bosch and Delphi.”
He added: “Our price competitiveness is the best in the world. Though the quality of our parts is on a par with Denso, a supplier for Toyota Motor, our prices are more than 20 percent lower.”
