Car sales are set to fall and currency rates look likely to remain volatile and as a result the group, which owns the Hyundai and Kia car brands, has decided to expand out its financial assistance programme that currently supports 300 suppliers to 5,000 subcontractors.
The group has operated four support programmes as part of its efforts to secure shared growth with smaller partners and these programmes have included product development as well as new facilities.
“We will support more subcontractors to benefit from support programs more easily,” a Hyundai Motor Group official told The Korea Herald.
As part of this the group also plans to improve trade practices that smaller firms may have experienced in dealings with the car-manufacturer in the past.
A new online system in which suppliers post contract plans and quarterly performances will be more detailed and information held by the group in regard to product development and future direction will be shared with suppliers and subcontractors.
Since 2002 the company said that it has put some $55m into a fund that has looked to boost product and technical competitiveness from suppliers.
