HIGH-POWERED M'SIAN AUTO PARTS SUPPLIERS VISITING GERMANY, FRANCE

By MANIK MEHTA

FRANKFURT, Oct 30 (Bernama) -- A high-powered marketing mission of Malaysian suppliers of auto parts and components will be in Germany and France on a week-long visit from Sunday to scout for business`prospects as more and more European car manufacturers seek foreign Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs)

Malaysia, with a strong auto-parts and components supplier base, has
good potential to make a strong impact on car manufacturers in Germany such as
Volkswagen, Mercedes-Benz and others that rely on a steady supply of quality
products for their cars.

"We've already set up meetings for the suppliers with their German
counterparts. We're confident the visit will generate good business for
Malaysian suppliers on a long-term basis," said Mohamad Sabri Ab Rahman, the
Malaysian Trade Commissioner in Frankfurt, who is Malaysia's point man in-charge
of the mission's visit to Germany.

The visiting group comprises 12 companies engaged in a wide range of
automotive parts and components from hi-tech sensitive parts to components.

Sabri said the mission's primary aim is to help Malaysian automotive parts'
and components manufacturers to expand their export market and Germany and
France are two attractive markets.

The visit will also provide insights for Malaysian companies on the latest
technology and automotive market trends.

In Germany, the delegation will visit Stuttgart and Frankfurt. Stuttgart is
home to leading car manufacturers, particularly the Mercedes-Benz Group, which
has huge operations in and around that city, said Sabri in an interview
with Bernama.

The Malaysia External Trade Development Corporation (MATRADE) had arranged
for one-on-one business meetings for the Malaysian suppliers with their
potential buyers.

Sabri said: "There is good potential to contract business from the
German automotive sector which sources about 80 per cent of its parts and
components from overseas suppliers.

"In terms of contribution to the total production cost of a car, some 60
to 70 per cent of the value is accounted for by systems and modules suppliers.

"The German industry depends on innovations from these suppliers to
manage its cost and value-added attributes," he said.

According to information received from the Malaysian Trade Commission in
Frankfurt, Germany is expected to produce about six million vehicles next year.

This figure includes both passenger and commercial vehicles. The value of
Malaysia's exports of automotive parts and components in 2008 amounted to US$
4.35 million over US$4.09 million in 2007.

Malaysian companies have also been supplying automotive parts and components
to Japanese and European car manufacturers.

While Malaysian automotive parts and components are appreciated for their
quality, Malaysia faces fierce competition from India which has become a
dominant force in the spare parts and components sector.

It is not unusual to see huge delegations of over hundred exhibitors from
India showcasing their wares at the Frankfurt Automechanika Trade Fair, the
world's largest event for autoparts and components segment.
-- BERNAMA