BMW to support Korean automotive startups at new R&D center
German luxury carmaker BMW Group is set to support South Korean automotive startups for their overseas expansions as it on Monday opened a new research & development (R&D) center at home to the world’s third-largest carmaker Hyundai Motor Group.
BMW established the BMW Startup Garage, the group’s venture client unit that aims to foster innovation at all of the carmaker’s divisions through cooperation with startups, at its expanded R&D center in Incheon bordering the capital of Seoul. South Korea is the world’s fifth-largest market for the group.
BMW is currently operating the program, which evaluates potential startups as suppliers and long-term partners, in six countries — Germany, the US, China, Israel, Japan and South Korea.
The automaker bought auto parts for 6.5 trillion won ($4.7 billion) from South Korean suppliers last year. Since 2010, it has spent 30.8 trillion won on the procurements of car components in the country.
TO STRENGTHEN COOPERATION
BMW also plans to enhance cooperation with South Korean suppliers for product developments while teaming up with local companies, research institutes and colleges to develop GPS navigation systems, voice recognition and user interface (UI) prototypes.
The group aims to utilize the new R&D center at the BMW Driving Center on Yeongjong Island to introduce models and solutions optimized for South Korea, Asia’s fourth-largest economy, where demand for luxury cars is growing.
Jochen Goller, a member of BMW’s management board, said the group will keep investing to provide better products and services in South Korea as the country was the fifth-largest market last year at the opening ceremony.
BMW is set to conduct various tests of new models before launches in the country to check if they perfectly meet regulations. It also seeks to make its own certification tests at the facility in the next three to four years.
The company plans to improve the performance and quality of its vehicles through intensive tests while establishing maintenance and management systems, as well as test processes for prototype models before launches.
In 2019, BMW unveiled a plan to expand its R&D center opened in 2015. The group started construction for the expansion in April last year.
Write to Nan-Sae Bin at binthere@hankyung.com
Jongwoo Cheon edited this article.
