South Korea's Mando in talks to supply parts for Tesla's Model 3: source

Reuters News
Posted: May 24, 2016 1:41 AM

SEOUL (Reuters) - Mando Corp <204320.KS> is in talks with Tesla Motors <TSLA.O> to supply parts for its Model 3 car, a person with direct knowledge of the matter said, seeking to join other South Korean firms supplying components for Tesla's more affordable electric cars.

Mando, which makes steering, brake and suspension parts, currently supplies steering racks for Tesla's Model S vehicles.

The source did not give any details on the parts that Mando could provide for the cheaper Model 3, citing confidentiality. A Tesla spokesperson was not immediately available for comment. A Mando spokesman declined to comment.

South Korea's Maeil Business Newspaper reported on Monday that Mando had been picked by Tesla to develop and supply self-driving car technology and parts, pushing up Mando's share price.

Asked for comment, a Tesla spokesperson in San Francisco said: "The rumors are not true. Tesla currently sources steering racks for its Model S vehicles from Mando. It does not supply autonomous technology systems."

Mando has two U.S. factories, in Alabama and Georgia, catering to demand from Hyundai Motor <005380.KS>, General Motors <GM.N> and Chrysler. Mando also makes semi-automated driver assistant systems for Hyundai Motor's Genesis G90 luxury sedan.

LG Display <034220.KS> and Hankook Tire <161390.KS> are among South Korean firms which plan to supply their products for the Model 3, sources have said.

Tesla has taken 373,000 orders for the Model 3 - which has a starting price of $35,000, about half the cost of its Model S - and has said it will begin customer deliveries in late 2017.

(Reporting by Hyunjoo Jin in SEOUL, Additional reporting by Alexandria Sage in SAN FRANCISCO and Dahee Kim in SEOUL; Editing by Richard Pullin)