GM's South Korean workers to strike amid wage talks

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Thread: GM's South Korean workers to strike amid wage talks

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    GM's South Korean workers to strike amid wage talks

    Automotive News

    SEOUL -- General Motors' unionized workers in South Korea will strike Monday to Wednesday over stalled wage talks and concern of another plant shutdown, union officials said on Friday, the first full walkout since GM bought local factories in 2002.

    The decision came after the union rejected GM's proposal for a base wage freeze and no bonuses for a second year in a row.

    Last year, the government injected 850 billion won ($712.85 million) into the money-losing unit after the U.S. automaker considered pulling out of the country. GM shut one of its four Korean factories following its pullback from major export market Europe and cut around 3,000 jobs.

    The government at the time said the injection would keep GM in South Korea for at least another 10 years. Even so, union officials continue to be concerned about further closures and job losses.
    GM has not offered any production plan for No. 2 plant in the city of Bupyeong after 2022, union officials said.

    GM Korea has said it will shift production of its Trax crossover to the plant from another nearby factory starting late this year. It did not provide longer term plan when contacted by Reuters.

    What crazy person will stage a full strike for three days under this economic situation? We are going on a strike because we are desperate," said a GM Korea union leadership official.

    "We are fine with no wages, but we want to hear GM's vision about the Korean unit," said the official, who declined to be identified due to the sensitivity of the matter.

    GM said it aims to break even in Korea this year for which it needs union cooperation.
    "It is unfortunate that the union decided to go on strike. The company has been delivering on commitments and we ask the union to do the same for the future of GMK," GM Korea (GMK) said in a statement on Monday.

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    GM just pumped another $3.6 billion dollars to invest in new products into propping up the South Korean jobs at this huge loss making concern.

    GM May 12, 2018 — General Motors says it will throw a $6.4 billion life preserver to its South Korean unit in an effort to keep GM Korea afloat in the midst of a sea of financial troubles. LINK

    What are General Motors a benevolent overseas aid charity for keeping overpaid greedy South Korean workers in a job?

    General Motor South Korean sales in August 6,411 sales down -13.3%

    Spark 3,618
    Trax 1,047
    Malibu 739
    Bolt 212
    Equinox 166
    Impala 66
    Camaro 2
    Aveo 0

    Cant see why General Motor are flushing billions of US made Silverado profits down the drains every year to prop up such crap sales numbers that continue in free fall unabated every year in South Korea.

    It is pretty obvious GM are never gonna never ever going make any profit ever on the roof of few thousand Sparks sales assembled by greedy overpaid South Korean every month, Barra needs to read the riot act to thier greedy unions.
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    Re: GM's South Korean workers to strike amid wage talks

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    Re: GM's South Korean workers to strike amid wage talks

    August 2019 South Korean best selling brands.

    1. Hyundai 48,316 -10.6%
    2. Kia 43,362 - 1.9%
    3. SsangYong 8,038 -11.2%
    4. Renault Samsung 7,771 +9.3%
    5. Mercedes 6740 +123.3%
    6. General Motors Korea 6,411 -13.3%
    7. Genesis 4,581 +1.2%
    8. BMW 4,219 +80.1%
    9. Mini 1,095 +36.2%
    10. Volvo 883 -2.5%


    Does anybody know what is fuelling the huge growth in BMW & Mercedes sales in South Korea?
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    Re: GM's South Korean workers to strike amid wage talks

    GM should have pulled out of Korea last year. Boo-hoo. Go talk to the thousand let go at Lordstown. Mary should have put Encore GX and Trailblazer in Lordstown. A future EV VSS model should be built there along with a future GMC Granite.

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    Re: GM's South Korean workers to strike amid wage talks

    The other South Korean Manufacturers don't seem to have difficulty dealing with the Unions ……………..
    Who the hell approved this abomination? Hidden Content

    I bet it was some dumbarse in Detroit Hidden Content

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    Re: GM's South Korean workers to strike amid wage talks

    Quote Originally Posted by VS Ute 5Litre View Post
    The other South Korean Manufacturers don't seem to have difficulty dealing with the Unions ……………..
    It's almost like GM wants this to happen so it has
    justification to progressively exit South Korea

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    Re: GM's South Korean workers to strike amid wage talks

    Quote Originally Posted by VS Ute 5Litre View Post
    The other South Korean Manufacturers don't seem to have difficulty dealing with the Unions ……………..
    But look at Hyundai/Kia's volume vs. all other makes - they own the market, making a profit selling 6,000 vehicles a month is probably a lot more challenging vs. nearly 100k vehicles. For GM it is a low margin business (low volume and isn't most of their lineup low end/low profit cars?), they have to keep a lid on costs otherwise they'll be unprofitable, which they currently are.

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    Re: GM's South Korean workers to strike amid wage talks

    Quote Originally Posted by BlackGTP View Post
    But look at Hyundai/Kia's volume vs. all other makes - they own the market, making a profit selling 6,000 vehicles a month is probably a lot more challenging vs. nearly 100k vehicles. For GM it is a low margin business (low volume and isn't most of their lineup low end/low profit cars?), they have to keep a lid on costs otherwise they'll be unprofitable, which they currently are.
    Doesn't GM export a lot from South Korea? I agree that GM should probably give up on local sales of low-end vehicles but I suspect the manufacturing operation is still important.

    GM should probably focus South Korean sales efforts on imported high-end vehicles: Cadillacs and perhaps a few other higher-end US-market vehicles.
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    Re: GM's South Korean workers to strike amid wage talks

    Quote Originally Posted by BlackGTP View Post
    But look at Hyundai/Kia's volume vs. all other makes - they own the market, making a profit selling 6,000 vehicles a month is probably a lot more challenging vs. nearly 100k vehicles. For GM it is a low margin business (low volume and isn't most of their lineup low end/low profit cars?), they have to keep a lid on costs otherwise they'll be unprofitable, which they currently are.
    not to mention like Opel being a "discrete" division having to run all of there own "back office" / legal ETC and LITTLE support from GM CORP EX with the closing / winding down of all markets NOT CHINA OR USA - 2 markets that are VERY CLOSED to IMPORTS

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    Re: GM's South Korean workers to strike amid wage talks

    Quote Originally Posted by emh View Post
    Doesn't GM export a lot from South Korea? I agree that GM should probably give up on local sales of low-end vehicles but I suspect the manufacturing operation is still important.

    GM should probably focus South Korean sales efforts on imported high-end vehicles: Cadillacs and perhaps a few other higher-end US-market vehicles.
    But, since Mother China effectively forces all foreign makes to produce in China, and China is the largest Asian market, it doesn't make much sense to set up production of the high end brands in S. Korea.. If China were a free market with minimum tariffs, then I'd say a manufacturing hub in S. Korea makes sense. But since most of GM-Asia's sales are in China, that's where it makes sense to build.

    If GM-Asia excluding China were a large market, then I'd say it would be a good idea to manufacture outside of China as then the auto makes can keep 100% of their profits vs only keeping 49% in China itself.... Though I think that 49%/51% thing is going away if I recall correctly.

    S. Korea operations don't make much sense. I assume they can't export to China, otherwise they'll get hit with huge import taxes, making their cheap cars not-cheap. And building in Korea and exporting to the USA doesn't make huge sense either as we have Mexico to cheaply build low end makes (plus I think S. Korea's labor isn't exactly cheap) and presumably less shipping costs.

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    Re: GM's South Korean workers to strike amid wage talks

    Quote Originally Posted by BlackGTP View Post
    But, since Mother China effectively forces all foreign makes to produce in China, and China is the largest Asian market, it doesn't make much sense to set up production of the high end brands in S. Korea.. If China were a free market with minimum tariffs, then I'd say a manufacturing hub in S. Korea makes sense. But since most of GM-Asia's sales are in China, that's where it makes sense to build.
    I said "GM should probably focus South Korean sales efforts on imported high-end vehicles". In case it wasn't clear, I'm not suggesting any manufacturing of high-end vehicles there.

    If GM-Asia excluding China were a large market, then I'd say it would be a good idea to manufacture outside of China as then the auto makes can keep 100% of their profits vs only keeping 49% in China itself.... Though I think that 49%/51% thing is going away if I recall correctly.

    S. Korea operations don't make much sense. I assume they can't export to China, otherwise they'll get hit with huge import taxes, making their cheap cars not-cheap. And building in Korea and exporting to the USA doesn't make huge sense either as we have Mexico to cheaply build low end makes (plus I think S. Korea's labor isn't exactly cheap) and presumably less shipping costs.
    It may very well be the case that S. Korea is a lot more expensive for small car manufacturing than China. But it is a lot more stable environment to operate in and not nearly as much subject to the whims of the local government (or the US government, for that matter) and GM already has operations there. FWIW, if I were a major global company, I'd be wary of putting all my Asian eggs in China.
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    Re: GM's South Korean workers to strike amid wage talks

    Mother Barra could redeem herself if she closed their South Korea plant, and move production to the Hamtramck or Lordstown plant(s).

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    Re: GM's South Korean workers to strike amid wage talks

    Quote Originally Posted by DequindreToo View Post
    Mother Barra could redeem herself if she closed their South Korea plant, and move production to the Hamtramck or Lordstown plant(s).
    GM Korea's vehicle assembly operations currently encompass three plants: Bupyeong 1, Bupyeong 2, and Changwon.

    Bupyeong 2 utilization rate is about 30%. Hamtramck was at 37% at the time GM announced it would be "unallocated"; Lordstown at 30%. GM should close all three. The company still suffers from overcapacity in its global network of vehicle assembly plants.
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    Re: GM's South Korean workers to strike amid wage talks

    Quote Originally Posted by gkr778 View Post
    GM Korea's vehicle assembly operations currently encompass three plants: Bupyeong 1, Bupyeong 2, and Changwon.

    Bupyeong 2 utilization rate is about 30%. Hamtramck was at 37% at the time GM announced it would be "unallocated"; Lordstown at 30%. GM should close all three. The company still suffers from overcapacity in its global network of vehicle assembly plants.
    considering a lot of that "global" is being shut down / abandoned / SH canned by management choices

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