Posco International said Tuesday that it has won an order for electric vehicle parts from Vietnam’s automotive manufacturer VinFast in partnership with Korean parts firm Erae AMS. It is the first time for the trading company to supply auto parts to VinFast.
Vinfast is Vietnam’s first automaker, with investment from Vietnamese conglomerate Vingroup. The halfshaft supplied to VinFast is a component that acts as a drive shaft in an electric vehicle. The product is to be supplied from next year, after detailed adjustment and testing, the firm said. The amount of supplies is equivalent to about 100,000 electric vehicles produced by VinFast.
“This order is to supply parts to VinFast’s first electric vehicle. By winning orders for electric vehicle parts, which are future strategic models, it laid the foundation for expanding businesses such as localization and investment in the future,” the firm said.
Erae AMS is a component manufacturer that specializes in producing automotive parts such as driving, braking and steering. It started cooperation with Posco International in 2011 and currently supplies driving parts to Fiat-Chrysler in North America through the trading firm.
“We are actively targeting the growing electric vehicle market by establishing an eco-friendly car group recently,” a Posco International official said. “We will continue to cooperate with small and medium-sized domestic companies to increase the supply of parts for eco-friendly cars.”
By Shin Ji-hye (firstname.lastname@example.org