ArvinMeritor to procure auto-parts from Taiwan

Jan 17, 2005 Ι Industry In-Focus Ι Auto Parts and Accessories Ι By Quincy, CENS
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Taipei, Jan. 17, 2005 (CENS)--ArvinMeritor Inc. of the U.S. recently held an auto-parts procurement-policy seminar in Taiwan for many invited local suppliers, according to Taiwan External Trade Development Council (TAITRA).

ArvinMeritor procured over US$20 million worth of auto parts from Asia in 2004 and the figure is expected to outstrip US$100 million in 2005.

Over 100 representatives from 80 local auto-parts suppliers participated in the seminar. ArvinMeritor plans to outsource many items from the island such as shock absorbers, piston connecting rods, steel pipes, oil seals, dust covers, gas springs, filters, rubber seal parts, and other forging, machining and pressing parts.

TAITRA said that its International Sourcing Center (ISC) plans to invite the world's top-100 auto-parts makers to visit Taiwan this year. TAITRA is scheduled to arrange at least 15 international auto-parts procurement seminars in Taiwan this year, including the first held by ArvinMeritor.

ArvinMeritor's procurement manager Chou Yung-huei said that the quality of Taiwan-made auto parts has met his company's requirement, adding that ArvinMeritor has decided to move its Asia procurement center to Taiwan.

According to TAITRA, ArvinMeritor is one of the world's top-10 auto-parts suppliers, with some 36,500 employees at more than 151 manufacturing facilities in 25 countries. ArvinMeritor, which scored annual revenue of US$8 billion in 2003, supplies a broad range of integrated systems, modules and components for the vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment (OE) manufacturers and related aftermarkets.

ArvinMeritor's major products include passenger-car door/window systems, suspension and brake systems, exhaust systems, power sun-roof systems and wheel rims. The company supplies products to many international auto makers such as Ford, GM, DaimlerChrysler, Volvo, Toyota, Peugeot, BMW, Mitsubishi etc. ArvinMeritor currently owns the world's highest market shares of the markets for shock absorbers, filters, and exhaust pipes.

Huang Wen-rong, head of TAITRA's market development department, said that the global automobile market has been increasingly competitive and more and more tier-one parts suppliers are rapidly elevating their procurement ratios from Asia contract suppliers in a bid to cut costs. Huang estimated that the annual outsourcing value from big international tier-one parts makers with their Asian partners is several-billion U.S. dollars.

Huang Wen-rong, head of TAITRA's market development department, pointed out that TAITRA has been trying to help local auto-parts makers tap overseas businesses in recent years under the commission of the Ministry of Economic Affairs. This year, the department head added, TAIYRA would more aggressively explore foreign OE (original equipment) business chances than ever.
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