SEOUL, Oct. 16 (Korea Bizwire) – Hyundai Motor Group will raise a fund of 5 billion won (US$4.7 million) to help its second- and third-tier suppliers for raising the quality of auto parts to enhance competitiveness of the overall automotive industry in Korea.
The fifth largest motor group in the world launched the second phase of “Industry Innovation Movement 3.0” jointly with the Foundation of Korea Automotive Parts Industry Promotion and around 150 second- and third-tier suppliers on October 14.
The Industry Innovation Movement 3.0, sponsored by the Ministry of Trade, Industry and Energy and the Korea Chamber of Commerce and Industry, is a government-level project in which large companies and their first-tier partners support the second- and the third-tier partners.
The movement aims to raise the competitiveness of the whole industry by supporting the medium- and small-size companies for their innovative activities including technology development and improvement in work environment and production processes in major industry fields like automobile manufacturing.
In the automotive industry, Hyundai Motor Group led the first phase of the movement last year by pouring in 5 billion won and was praised that it carried the competitiveness of the Korean auto parts industry one level higher by its active support for the management innovation of the auto parts manufacturers.
In fact, the 150 partner companies which joined the first phase of the project last year showed improved results practically, or a 55 percent decrease overall in error rate and shortening of delivery time. The positive results helped enlarge the first-tier partner-focused win-win growth paradigm into second- and third-tier partners.
In the second phase of the project, Hyundai will fund another 5 billion won to support the innovative work of the partners in improving quality, enhancing productivity and reducing production cost.
To accomplish the goal, the motor group will help the partners to check their management efficiency and improve the way their work is done accordingly. Also, it will make another investment for the production facilities to raise quality and productivity when necessary.
Along with Hyundai, the first-tier partners who link Hyundai and small- and mid-sized second- and third-tier partners will back up the project by forming a constant support system for the small partners.
By John Choi (email@example.com)