Sumeeko Expects Better Results in Operations

The current scandal of the VW Group dragged down the stocks markets in the U.S. and Europe. There is also news that Apple will release its own electric cars in 2019, generating a hot issue about electric cars again. Tesla is going to release its first and new SUV in the beginning of Oct. As a result, some of the Taiwanese supplier of Tesla including the fastener manufacturer Sumeeko for its Model X and another one for its charging devices have both become the main focus of investors.

Sumeeko is not only the fastener supplier of Tesla, but is also the main supplier of GM and Chrysler. Some of the orders for Sumeeko’s parts were originally processed with outsourced manufacturing. However, with official operation of the new Pingtung-based plant, 20% of the outsourced manufacturing will be taken back to be processed in its own plant and the gross profit is expected to increase. In addition to the new models of Tesla, the order from Audi Q5 model will be delivered starting from Q1 2016.

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