Peugeot-Citroen Group to procure auto parts from Taiwan

Taipei, May 27, 2004 (CENS)--French auto maker PSA Peugeot Citroen's Asia procurement office recently came to Taiwan to procure auto parts, and the Taiwan External Trade Development Council (TAITRA) has selected 20 local suppliers to negotiate with the French firm on possible business opportunities.

TAITRA said that Oliver Katz, director of Peugeot Citroen's Asia procurement office located in Shanghai, mainland China, came to Taiwan for the first time and contacted representatives of 20 local auto parts makers to find possible original equipment (OE) parts suppliers of sheet-metal body parts, pistons, bearings, aluminum alloy wheels, brake system parts, screws, auto doors and spoilers etc.

In the past, according to TAITRA, Peugeot Citroen procured most auto parts from Asian suppliers through trading companies. The French automobile conglomerate decided to set up the Shanghai international procurement office (IPO) in April this year to cut parts-procurement costs, and named Katz as the first director to handle the group's procurement affairs in the Greater China region.

Under TAITRA's arrangement, Katz agreed to contact local parts suppliers at the on-going 2004 Taipei Int'l Auto/Motorcycle Parts & Accessories Show (2004 Taipei AMPA) for negotiating further business opportunities.

TAITRA introduced 20 qualified local auto parts makers capable of supplying products on an original equipment (OE) basis, including Tong Yang Industrial Co., Ltd., Lio Ho Machinery Works Co., Ltd., Right Way Industrial Co., Ltd., China Ogihara Corp., CTE Corp., Taigene Electric Machinery Co., Ltd., Jui Li Enterprise Co. Ltd., Nan Hoang Traffic Instrument Co., Ltd., and Lian Chen Metal Manufacturing Works Co., Ltd. Etc.

TAITRA said that most big international auto makers and first-tier parts suppliers have set up IPOs in Shanghai, but the advantages of Taiwan's auto parts line, including high quality, strong logistic and service abilities are still drawing more and more big foreign buyers to the island, including Germany luxury car brands Mercedes-Benz, Audi and BMW.

TAITRA said that the Peugeot-Citroen Group is the largest automobile conglomerate in France, the No. 2 in Europe, and one of the top-10 in the world. In addition to its auto-production business, the French conglomerate is also involved in machining, transportation, financial and service businesses. Last year, the group raked in total revenue of US$68 billion, up 19.3% from 2002, and currently it employs about 200,000 people worldwide.