Foreign auto parts companies target Japanese carmakers

Auto parts manufacturers are actively seeking business with Japanese automotive companies. A Korean government agency, the Korea Trade Investment Promotion Agency (KOTRA) is assisting South Korean auto parts companies in their bid to supply the Japanese automotive industry with automotive components. As most South Korean auto parts manufacturers are too small to set up business in Japan, the function of KOTRA is to help the South Korean companies do business in Japan without a physical presence. To give these South Korean companies access to the Japanese market, KOTRA holds auto parts exhibitions around Japan. Invitations are also given to Japanese automotive companies to attend exhibitions in Korea. Doing business with Japanese automakers that are known for producing quality vehicles can enhance the brand image of a foreign auto parts company if their components are used in Japanese vehicles. Other foreign auto parts companies seeking business in Japan include Johnson Controls, a U.S. company who will set a new headquarters in Yokohama in an effort to increase its business with Japanese automakers. A French company, Valeo SA, is buying shares in Niles Co., a Japanese auto parts manufacturer. (February 28, 2011)