Automobile Industry Association “The parts industry is also in crisis due to the supply and demand of semiconductors for vehicles”

As the financial difficulties in the auto parts industry intensify due to the prolonged disruption in supply and demand for automotive semiconductors, the auto industry argued that special solutions such as financial support are needed.

At the Automobile Industry Development Forum held at the Automobile Center on the 6th, Chung Man-ki, chairman of the Automobile Industry Association, said, “According to the results of a survey of 53 auto parts companies by the Korea Automobile Industry Association, 48.1% of respondents are reducing production due to disruptions in the supply and demand of automotive semiconductors , 72% predict that the supply and demand disruption will continue until the end of this year,” he said.

According to the survey, 64.0% of companies cut production to less than 20% and 36.0% of companies cut production to less than 50% due to disruption in supply and demand for automotive semiconductors.

Chairman Chung added, “In particular, 49.1% of respondents are experiencing difficulties in operating funds due to production disruptions by automakers,” he said. “The government and financial sectors need preemptive financial measures for these companies.”

He also argued that “72% of responding companies said they would replace imported products with domestic products as long as performance is satisfactory,” he said. “We should take advantage of this crisis as an opportunity for our automotive semiconductor industry to leap forward.”

Kim Joo-hong, executive director of the Korea Automobile Industry Association, said, “The parts industry needs to expand the scale of financial support, such as increasing the loan limit and lowering interest rates.”

At the forum on that day, the changes in the automobile industry structure and countermeasures due to Corona 19 were also discussed.

“With Corona 19, various changes in the global automobile industry have accelerated,” said Kim Joon-gyu, chairman of the Korea Automobile Industry Association. Electrification) centered on the center of the vertical and horizontal lines.

In addition, it analyzed that online sales expanded mainly among importers such as Tesla, and the global value chain (GVC) was reorganized with the focus of supply stability due to the effects of the US-China trade dispute and the supply-demand shortage of automotive semiconductors.

Chairman Kim said, “It was the only major country in the past year to improve the domestic demand of automobiles by 6.2%, but the limitations were exposed.” I can see it.”

In addition, he prevented the liquidity crisis by expanding support for the parts industry securitization company guarantee (P-CBO) in the short term and deferring tax payments in the short term to transform the future car and strengthen the competitiveness of the industrial ecosystem. They emphasized that they should support R&D for future vehicles, including tax credits.

Lee Hang-gu, a research fellow at the Korea Automobile Research Institute, said in the presentation, “The proportion of electric components in future cars is expected to increase to 70%, more than twice that of existing internal combustion engines. I was concerned.

He pointed out that in Korea, the number of manpower related to electronic parts and software is extremely short compared to advanced countries. “The US has more than 250,000 human resources in the eco-friendly automobile industry, and Germany has 126,000 automobile engineers.”

Ford is increasing the number of programmers from 300 to more than 4,000, and GM is increasing the number of employees in its autonomous driving subsidiary Cruise from 40 to 2,000, and the competition for talent is intensifying.

Researcher Lee also pointed out, “As of 2019, Germany invested 60 trillion won, Japan 45 trillion won, and the United States 23 trillion won in automobile industry R&D, while Korea was only 8.66 trillion won.”

In order to expand support for the parts industry, the Korea Automobile Industry Association has proposed a long-term low-interest special financing program and a special investment fund for automobile semiconductors to the government, and announced that it plans to strengthen continuous monitoring of automotive semiconductors at the level of the association.

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