France and South Korea compared automotive industry
- France and South Korea are both medium size countries (65 million inhabitants in France and 49 million inhabitants in South Korea in 2011). Both have powerful automotive industries. Comparing them is therefore interesting .
- France controls two carmakers group (Renault-Nissan and PSA Peugeot-Citroën) and Korea control one carmaker group (Hyundai-Kia).
The two French groups have produced 11 million vehicles globally in 2011, and the Korean group produced 7,000,000 vehicles in the same year 2011. In 2005, the two French groups produced 10 million vehicles and the Korean 3.5 million vehicles.
Hyundai-Kia has doubled its production in seven years, while PSA remained stable and Renault-Nissan increased its production by one million vehicles(+15%).
The two French groups have produced 11 million vehicles globally in 2011, and the Korean group produced 7,000,000 vehicles in the same year 2011. In 2005, the two French groups produced 10 million vehicles and the Korean 3.5 million vehicles.
Hyundai-Kia has doubled its production in seven years, while PSA remained stable and Renault-Nissan increased its production by one million vehicles(+15%).
- Production of national groups on the soil of their respective countries developed differently. Production of the Korean manufacturer increased in Korea while production of French manufacturers decreased in France. Offshoring to countries with lower labour costs, qualified staff, and with which political positioning does not cause problems, is more difficult for Koreans than for French.
However, both French and Korean carmaker groups manufacture more and more outside of their national territory, to get closer to the demanding markets (mainly China, India, USA, Russia). Korean group produced half its vehicles in Korea in 2012 (against 80% in 2005) while the two French groups manufacture 16% their vehicles in France (against 32% in 2005).
However, both French and Korean carmaker groups manufacture more and more outside of their national territory, to get closer to the demanding markets (mainly China, India, USA, Russia). Korean group produced half its vehicles in Korea in 2012 (against 80% in 2005) while the two French groups manufacture 16% their vehicles in France (against 32% in 2005).
