Taiwan Auto Parts Companies Gaining More Recognition as German Auto Parts Company Considers Procurement

October 9, 2006

Kirchhoff Automotive, one of Germany's biggest auto parts manufacturers, sent two procurement managers to Taiwan in late Sept. to announce the company's purchasing policies, acting upon an invitation by the Taiwan External Trade Association (TAITRA).

The German company's visit follows a higher profile appearance by Taiwanese companies at the Frankfurt Auto Show – this year, 550 companies represented Taiwan at the show, which is one of the world's largest after-sales markets for automotive parts.

Kirchhoff Automotive -- a supplier to name brand companies such as General Motors, Volkswagen Audi, and Ford -- is one of an increasing number of global auto parts manufacturers that is shifting procurement to Asia to lower costs, said a TAITRA spokesperson. More Taiwanese auto parts manufacturers are now presenting themselves as viable suppliers to international companies, said the spokesperson.

Kirochhoff Automotive employs over 2,500 workers worldwide, and in 2004 reported earnings of Euro 500 million. The company spends USD 130 million per year on procurement.

(Economic Daily News)

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