KOTRA, Hyundai, and Kia Activate 'K-One Team' to Find Breakthroughs in Automotive Parts Exports

KOTRA Supports Entry into Ford and Stellantis Supply Chains
52 Korean Automotive Parts Companies Showcase in Detroit
"Innovative Technologies and Supply Chain Stability Prioritized Over Price"

As exports of automotive parts have declined both last year and in the first half of this year due to U.S.-imposed tariffs, the transition to electric vehicles, and expanded localization, the so-called "K-One Team" is accelerating efforts to enter global automaker supply chains and seek new business opportunities for Korean automotive parts.

On July 19, the Korea Trade-Investment Promotion Agency (KOTRA) announced that, in collaboration with Hyundai Motor Company and Kia, it hosted the "Ford-Korean Suppliers Day" and the "Stellantis Innovation Tech Show" simultaneously for three days starting from the 14th (local time) in Detroit, the heart of the automotive industry in the United States.

This initiative is the immediate result of KOTRA and Hyundai Motor Company and Kia activating their cooperation framework right after signing a "Memorandum of Understanding (MOU) for Supporting Overseas Expansion of Domestic Automotive Parts Manufacturers" on July 8.

The exhibition consultations held at the headquarters of Ford and Stellantis saw a strong presence from K-part suppliers, with 52 companies—44 of which are Hyundai and Kia partners—showcasing their products and supply capabilities to purchasing and technology managers from global original equipment manufacturers (OEMs).

This consultation event reflected the component needs and shifting policies of North American automakers, as identified by KOTRA. Earlier this year, the KOTRA Detroit office obtained a list of 37 required parts and delivery company requirements from Ford and Stellantis, which led KOTRA headquarters to launch a search for suitable domestic companies.

KOTRA, in collaboration with Hyundai Motor Company and Kia, simultaneously held the ‘Ford-Korean Suppliers Day’ and ‘Stellantis Innovation Tech Show’ for three days starting from the 14th (local time) in Detroit, the heart of the automobile industry in the United States. Scene from the Ford-Korean Suppliers Day exhibition consultation site. KOTRA.

A global purchasing manager from Ford stated that “it is advantageous to be a company with production facilities located within the United States-Mexico-Canada Agreement (USMCA) region,” outlining their conditions. Stellantis’s purchasing manager highlighted that “the key is cost reduction through innovative technologies,” emphasizing the importance of technical capabilities and pricing.

KOTRA analyzed that global automakers are increasingly prioritizing “technological capability” and “supply chain stability” over just “cost” when selecting parts suppliers. While price cuts may bring short-term benefits, improvements in quality and productivity based on innovative technology can boost long-term competitiveness. In addition, after the pandemic, the significance of supply stability has increased due to semiconductor shortages and tariff risks, and as a result, automakers increasingly prefer companies with production bases within North America.

This event featured ▲ presentations on purchasing policies from Ford and Stellantis ▲ 1:1 exhibition consultations between Korean automotive parts suppliers and purchasing managers from completed vehicle manufacturers ▲ and networking sessions.

K-part suppliers showcased and explained their products and technologies to executives and purchasing managers from Ford and Stellantis who attended the event. Automakers also demonstrated high interest by asking about the technological validity and mass-production feasibility of K-parts.

One attendee from Ford remarked, “We recognize the quality and outstanding technological capabilities of Korean parts makers. By having direct communication with them this time, we hope to confirm their technical strengths and enhance the possibilities of cooperation as potential partners.”

A Stellantis participant also expressed enthusiasm, saying, “Stellantis values innovative technologies and robust partnerships that can enhance supply chain stability. Collaboration with K-part suppliers will provide a chance to discover innovative technologies that will drive our five-year strategic plan, ‘FaSTLAne 2030’.”

KOTRA plans to proactively support the entry of K-parts suppliers into global automaker supply chains. In cooperation with global automakers, it will identify their purchasing needs and requirements, and in the second half of this year, will host export exhibition and consultation events tailored to the needs of local automakers in Germany, Japan, and Brazil.

Kang Kyung-sung, President of KOTRA, stated, “Despite the automotive parts industry facing major transformations with tariffs, the shift to electric vehicles, and localization, our companies continue to demonstrate exceptional quality and competitiveness. By leveraging our overseas network and collaborating with Hyundai Motor Company and Kia, we will make every effort to identify global automaker demand and support K-parts companies in expanding their entry into global automotive supply chains.”

This content was produced with the assistance of AI translation services.