-On the occasion of visiting Korea for selection of parts suppliers for its 2008 model cars

Ford’s automotive parts purchasing delegation, comprised of purchasing managers and key engineers of Ford, Visteon, and Tower Automotive, made a supply contract for $250 million worth of parts with 27 Korean suppliers, after arriving here on October 16 for a one-week stay to select suppliers of molds for their 2008 model cars.

The delegation’s visit to Korea was a result of continued efforts made by the Gyeonggi Provincial Office and S.TRADE (the KOAAshow host) over the past two years. Ford’s officials had its intention for the supply contract known at the KOAAshow 2005 held last September.

It appears that the possibility remains very high that Korean suppliers will be finally selected as the mold suppliers for Ford’s 2008 model cars, as the delegation spoke highly of their relevant facilities, equipment and technological prowess after paying visits to their factories. The delegation had also paid visits to suppliers in Australia and China in an effort to select the most suitable suppliers.

Ford has pressed ahead with a plan to outsource parts from some Southeast Asian countries since the first half of 2994 after launching the LCC (Low Cost Country) Department for promotion of global outsourcing in earnest, attributing its weakening competitiveness to the high-cost mold sector

A Gyeonggi Province official said, “The visit by Ford’s delegation this time is related to its plan for global outsourcing of automotive parts. It is expected that, if the U.S. carmaker selects Korea as its parts (mold) supply base, the province, which houses the most parts suppliers (217 businesses or 23.8%), will emerge as the hub of the automotive industry in Northeast Asia.”