Could Hyundai and Kia Revolutionize Carbon Emission Reduction with Parts Suppliers?
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Synopsis
Hyundai and Kia are uniting with the government and 87 suppliers to tackle carbon emissions in the automotive sector. This initiative aims to enhance environmental standards and improve competitiveness. Discover how their collaborative efforts could reshape the industry's eco-friendly landscape.
Key Takeaways
- Collaboration: A crucial strategy involving government, major corporations, and SMEs.
- Emission Reduction: Focus on upgrading facilities to lower carbon outputs.
- Global Competitiveness: Aims to enhance South Korea’s standing in international markets.
- Long-term Goals: Supports the 2035 NDC target for significant emissions cuts.
- Pilot Programs: Testing initiatives with major consortiums to expand efforts across sectors.
Seoul, Nov 17 (NationPress) Hyundai Motor and Kia are set to collaborate with the government and 87 auto parts manufacturers in a unified initiative aimed at minimizing carbon emissions across the entire automotive industry, as announced by the industry ministry on Monday.
As part of this alliance, the two leading automakers will initially assist in upgrading the emission reduction systems of first-tier auto parts suppliers in conjunction with the government, according to the Ministry of Trade, Industry and Resources, as reported by Yonhap news agency.
Subsequently, these first-tier suppliers will extend the support they receive to second-tier suppliers, intending to establish a ripple effect of emission reduction throughout the automotive supply chain, as explained by the ministry.
The ministry highlighted that this collaborative project is designed to bolster the emission reduction capabilities of South Korea's automotive sector amidst tightening emission-related regulations in major markets, such as the European Union's vehicle carbon footprint regulations.
“Achieving carbon reduction in supply chains is not feasible for any one company alone,” stated Park Dong-il, an official from the ministry responsible for industrial policy. “It necessitates collaboration among the government, larger corporations, and SMEs.”
“We anticipate that this carbon reduction agreement within the supply chain will not only assist the nation in achieving its 2035 Nationally Determined Contribution (NDC) target but also expedite the green transition of our industries and enhance their competitiveness in the global supply chain,” he added.
Recently, South Korea established its NDC target for greenhouse gas emissions reduction by 53-61% from 2018 levels by 2035.
The ministry intends to initiate pilot programs for the emission reduction partnership this year, collaborating with four distinct industrial consortiums led by LG Electronics Inc., POSCO Group, LX Hausys Ltd., and LG Chem Ltd., aiming to broaden such partnership programs to various sectors by 2026.
Point of View
This collaborative initiative between Hyundai, Kia, and various stakeholders showcases a proactive approach towards sustainable development in the automotive sector. It reflects a growing recognition of the need for collective action in addressing climate change and enhancing industrial competitiveness. Such partnerships are crucial for meeting national and international environmental targets.
NationPress
17/11/2025
Frequently Asked Questions
What is the main goal of the partnership between Hyundai, Kia, and parts suppliers?
The main goal is to collaboratively reduce carbon emissions across the automotive sector by upgrading emission reduction facilities and creating a supportive chain effect among different tiers of suppliers.
How does this initiative align with South Korea's environmental goals?
This initiative aligns with South Korea's Nationally Determined Contribution (NDC) target of reducing greenhouse gas emissions by 53-61% from 2018 levels by 2035.
What role do first-tier and second-tier suppliers play in this initiative?
First-tier suppliers will receive support to improve their emission reduction systems and will then extend this support to second-tier suppliers, fostering a comprehensive approach to carbon reduction.
