SEOUL — Hyundai Motor on Monday conducted due attention on a agreement automobile prolongation plant site for probable investment, as a South Korean organisation seeks ways to cut costs and preserve collateral to rise new technologies such as electric vehicles.
The pierce follows Hyundai’s proclamation on Friday that it had submitted a minute of vigilant to cruise investing in a plant due by a city of Gwangju in a southwest of a country.
Contract prolongation has been mostly used by wiring attention — Apple Inc. outsources prolongation of a bulk of iPhones and other inclination to Taiwan’s Foxconn — and determined automakers are gradually embracing contractors too in a bid to save costs.
Canadian automobile tools retailer Magna International Inc. produces BMW and other cars, and Hyundai’s associate Kia Motors outsources a prolongation of a Picanto mini car.
But Hyundai’s investment, if finalized, would symbol a singular enlargement by vital automakers into agreement manufacturing.
“Even yet a investment is confirmed, we are deliberation outsourcing and securing reserve of an careful new automobile by investing in a non-controlling interest but participating in a supervision of a new corporation,” Hyundai pronounced in a statement.
The Joonang Ilbo daily reported final week that a city of Gwangju supervision is looking to build a plant by 2020 during a beginning and keep annual salary during 40 million won ($37,380), or roughly half that of Hyundai Motor.