Abstract Taiwan¡¦s auto part manufacturer has achieved substantial technology levels due to long- term cooperation with domestic automakers and under the rule of vehicle local content rate requirement. Above all, some of auto part makers have the capability to export parts with their R&D over the recent years. Because Taiwan¡¦s vehicle market volume ranges from 340,000 to 510,000 , it virtually couldn¡¦t allow thousands of local automakers to achieve production economy-scale, leading to limited room for further development. As a result, local automakers seek to develop overseas markets. From 1992-2002, Ministry of Economic affairs aggressively seek Taiwan¡¦s accession to WTO to upgrade Taiwan¡¦s role as an major international trade player while helping Taiwan¡¦s auto part industry to gain access to international labor-division system. Finally, Taiwan became a member of WTO on 1st,Jan. 2002. However, the impact on Taiwan¡¦s accession to WTO would enable the market to project a ¡§¡¨winner take it all¡¨ situation. Because Taiwan¡¦s auto industry will face the impact of tariff reduction¡Bquota cancellation following Taiwan¡¦s admission to WTO and local content rate cancellation in Taiwan¡¦s auto part industry ,Taiwan¡¦s auto industry would face global competition ,which is not only a threat ,but an opportunity as well. On the other hand, Taiwan¡¦s admission to WTO would expand Taiwan¡¦s domain of international trade. The global market will open to us based on the principle of reciprocal benefit¡Bequality. It would be an advantage for us in the long term .Furthermore, the emerging auto markets ,such as China¡BASEAN, would also provide a big business opportunity for investment ,which would be beneficial to Taiwan¡¦s auto industry labor-division system and competitive advantage .However, the success of Taiwan auto part industry¡¦s transition depends on how auto parts suppliers seize opportunity , using and exploiting human resources¡B upgrading product design and development capability ¡B producing parts with quality that meets global standards¡Benhancing manufacturing technology ¡Bdeveloping marketing channels etc. Only by effectively integrating internal resources could we confront the impact and opportunities brought by our accession to WTO and grasp the opportunity to transition by utilizing successful management strategy. Key word: Auto part , policy, management strategy.