POSCO Inter partners with domestic small giants to supply car parts to Volkswagen

Volkswagen Golf GTE, Audi A3 E-tron Application

[Asia Economy Reporter Kim Ji-hee] POSCO International announced on the 19th that it will sell automotive parts called 'indexing wheels' to Germany's Volkswagen in collaboration with the domestic automotive parts company S&S.

S&S is a domestic small and medium-sized enterprise mainly producing forged parts used in transmissions and bearing parts used in electric vehicles. Since starting cooperation with POSCO International in 2010, S&S currently sells most of its export volume to global automakers such as GM and Fiat Chrysler (FCA) through POSCO International.

The indexing wheel supplied this time is one of the forged parts and is a transmission part for plug-in hybrid electric vehicles (PHEV). It is scheduled to be applied to the Volkswagen Golf GTE and Audi A3 E-tron. The sales volume is about 130,000 units annually.

After signing a parts supply contract with Volkswagen last year, POSCO International jointly developed parts meeting the required specifications with S&S for over a year. POSCO International provided information related to customer demand and processes through its overseas network.

In addition, to establish local post-processing facilities requested by the automaker, POSCO International actively collaborated by leasing local sites in Germany. Through the post-processing process, quality control such as cleaning of parts is possible, and since the parts can undergo final processing immediately upon arrival at Volkswagen, establishing post-processing facilities locally is required.

This achievement can be seen as a case of shared growth where POSCO International solved the difficulties of a small and medium-sized enterprise based on years of cooperative relationships.

A POSCO International official said, "Domestic small and medium-sized parts companies and general trading companies are realizing the 'corporate citizenship' philosophy by not only cooperating in production and sales but also responding together to buyer demands locally and strengthening sales networks for shared growth." He added, "We plan to continue leveraging the company's strengths to actively support the overseas expansion of domestic small and medium-sized enterprises and play a role in mutual growth."

This content was produced with the assistance of AI translation services.