BMW has confirmed South Korean parts manufacturer Mando will supply it with components but declined to specify the nature of the deal or its value.
Korean reports are noting the contract is for the supply of brake systems worth US$178m from 2013, although the German manufacturer is remaining tight-lipped.
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“We confirm Mando but we do not give any details – usually we do not give any details of the supplier,” a BMW spokesman in Munich told just-auto.
However, a source in Germany told just-auto the deal was for brake systems but was unable to confirm the amount.
Mando – a major parts supplier to Hyundai Motor – recently relisted on the Seoul bourse after 10 years.
The South Korean company has also reportedly been eyeing China for some time with its fast-growing neighbour providing a ready potential for export.
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By GlobalDataAnd the recent strength of the yen could also prompt South Korean suppliers to look at Japan as manufacturers struggle with the powerful currency.
“Generally, [the] current stronger yen has affected OEM attitude for [the] parts supply business – Japanese OEMs have contacted overseas suppliers to hedge exchange rate fluctuating risks,” IHS analyst Masatoshi Nishimoto told just-auto from Tokyo. In this sense, Korean suppliers will have may more chances to get business from Japanese OEMs.
“On the other hand, for Japanese suppliers, it is very important to go out of Japan, because Japanese OEMs are trying to get parts out of Japan. If the current stronger yen continues, Korean suppliers will have big chances, while Japanese suppliers will lose business with Japanese OEMs.”
