GOV’T TO ASSIST FUTURISTIC VEHICLE SECTOR

입력 2021.06.11 (15:08) 수정 2021.06.11 (16:53)

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[Anchor Lead]

The automobile industry is transitioning from internal combustion engines to electric, hydrogen and other futuristic vehicles. But most of the local automotive parts companies remain helpless in preparing for the new era of automobiles. The government has therefore decided to assist automotive parts companies’s conversion to future cars.

[Pkg]

This is an automotive parts factory in Ansan, Gyeonggi-do Province. For more than 50 years, this factory has been producing only the pistons that go in the cars' engines. This company currently ranks number one in Korea and fourth in the world in market share, but they are worried about their future. There will come a time when internal combustion engines are replaced with electric motors and fuel cells, rendering engine pistons obsolete. The company is looking for a solution by developing components for hydrogen and electric vehicles.

[Soundbite] Jang In-hwan(Vice President, Dong Yang Piston) : "We feel greatly threatened by the transition to future cars. Existing equipment will become obsolete and many employees will be laid off. It directly impacts the fate of our company."

However, most of the local automotive parts companies are small with annual sales below 10 billion won. They are not capable of quickly responding to the arrival of future cars. In fact, eight out of ten automotive parts companies in the country don’t have plans in place for the new era. Some 4,100 or nearly half of all automotive components companies in Korea deal in internal combustion engines and other products that are not competitive in the future car market. A study concluded that 900 out of these companies will completely disappear before 2030. At this rate, chain bankruptcies and massive layoffs are inevitable. So the government has stepped up to lend a hand. The government will assist 1,000 existing companies with their research and development efforts so that they will be able to produce parts for future cars. Also, 10,000 new workers in the future car sector will be trained by 2025.

[Soundbite] Hong Nam-ki(Deputy Prime Minister) : "The government will expand the business reorganization assistance system, which includes the consultation on business restructuring and planning and the operation of a smart bridge project that links existing component companies with startups."

The government also plans to boost the localization rate of future car components, which currently rests at around 70%, to 95% by 2025.

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  • GOV’T TO ASSIST FUTURISTIC VEHICLE SECTOR
    • 입력 2021-06-11 15:08:11
    • 수정2021-06-11 16:53:42
    News Today
[Anchor Lead]

The automobile industry is transitioning from internal combustion engines to electric, hydrogen and other futuristic vehicles. But most of the local automotive parts companies remain helpless in preparing for the new era of automobiles. The government has therefore decided to assist automotive parts companies’s conversion to future cars.

[Pkg]

This is an automotive parts factory in Ansan, Gyeonggi-do Province. For more than 50 years, this factory has been producing only the pistons that go in the cars' engines. This company currently ranks number one in Korea and fourth in the world in market share, but they are worried about their future. There will come a time when internal combustion engines are replaced with electric motors and fuel cells, rendering engine pistons obsolete. The company is looking for a solution by developing components for hydrogen and electric vehicles.

[Soundbite] Jang In-hwan(Vice President, Dong Yang Piston) : "We feel greatly threatened by the transition to future cars. Existing equipment will become obsolete and many employees will be laid off. It directly impacts the fate of our company."

However, most of the local automotive parts companies are small with annual sales below 10 billion won. They are not capable of quickly responding to the arrival of future cars. In fact, eight out of ten automotive parts companies in the country don’t have plans in place for the new era. Some 4,100 or nearly half of all automotive components companies in Korea deal in internal combustion engines and other products that are not competitive in the future car market. A study concluded that 900 out of these companies will completely disappear before 2030. At this rate, chain bankruptcies and massive layoffs are inevitable. So the government has stepped up to lend a hand. The government will assist 1,000 existing companies with their research and development efforts so that they will be able to produce parts for future cars. Also, 10,000 new workers in the future car sector will be trained by 2025.

[Soundbite] Hong Nam-ki(Deputy Prime Minister) : "The government will expand the business reorganization assistance system, which includes the consultation on business restructuring and planning and the operation of a smart bridge project that links existing component companies with startups."

The government also plans to boost the localization rate of future car components, which currently rests at around 70%, to 95% by 2025.

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