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The future of Chevrolet, which was once rated as “a manufacturer capable of keeping Hyundai Motors in check,” is dark. Over the past six years, GM Korea has been running a consecutive deficit and the conflict between work and management is deepening, and the top GM executive in the United States has issued a warning, saying, “If the current situation persists, a shock could occur to long term”. The long-term shock, he said, is interpreted as being caused by GM’s withdrawal from the Korean market or the withdrawal of investment plans.
In response, many netizens pointed to the constant conflict between work and management, saying, “Get your mind up” and “What time is the conflict in this situation?” Some people continued to strongly criticize, saying, “If that’s the case, I’d rather retire.” Today, AutoPost Issue Plus takes a step closer to hearing the story of the Korean GM.
Written Joonyoung Park Publisher
With a solid foundation
Chevrolet also threatened Hyundai
After GM Daewoo disappeared in history, GM Korea, which has been successful in its history, is a deeply rooted company that has spent nearly 20 years in Korea building on its past successes.
However, Chevrolet, which was once rated as “a top-tier manufacturer capable of controlling Hyundai and Kia Motors,” based on its strong footing, recently recorded the latest volume of domestic sales, continuing its weak performance. It is not logged.
Deficit for six consecutive years
A bitter reality
Additionally, GM Korea is running a deficit for six consecutive years. Some say, “The automotive industry in general continued to collapse, and it was inevitable.” .
The Korean GM, which has been in deficit for six years since 2014, continues to reduce its deficit every year, but recently labor relations are rapidly deteriorating, leading to the worst situation. The National Union, GM Korea Metals Union, declared a strike, which caused some production interruptions due to the partial closure of the plant.
“Not just for new investments
It’s difficult to assign a new car “
Vice President of GM Headquarters
As the deficit continued for six years and the production stoppage due to deteriorating labor management relationships intensified, GM’s headquarters, which was observing this event, also expressed concern. In a telephone interview with Reuters, Steve Kiefer, senior vice president of GM’s US headquarters and head of the foreign trade division, said in a telephone interview with Reuters: “The GM Korea union is taking vehicle manufacturing hostage. and it is causing a severe financial blow in the short term. ” As a result, it is becoming difficult not only to make new investments, but also to allocate new cars to Korea. “
Furthermore, he strongly warned that “union strikes are making Korea itself an incompetent country” and that “if the labor management problem is not resolved within the period, a long-term shock will occur.” The long-term shock he said suggests GM may withdraw from the Korean market.
Recently it is worth 210 billion won
Investments have also been suspended
If this were normal, it could be dismissed as a simple warning, but given the current atmosphere, a deeper look at the analysis is needed as “there may be a withdrawal of GM Korea”. Indeed, GM recently announced that it would withhold the execution of expenses related to investments in the Bupyeong plant, which was planned to produce next-generation global products. The investment amount was around 210 billion won.
However, the Korean GM union is able to force a strike. The GM Korea Branch of the National Metal Workers’ Union held a countermeasures committee on the 10th and decided to conduct a partial strike for a total of 4 days from November 11-13. The refusal of overtime and overtime, carried out since the end of last month, also continues. The union side has already carried out a partial strike on a constant basis. On top of that, GM Korea is exerting a lot of pressure on it, saying, “I’ll go out into the country all night.”
But the union insists on the strike
The interruption of production is approximately 22,300 units
As the partial union strike continued, GM Korea said: “There was already a loss of 5,064 units in production last month.” The interruption of the accumulated production until the 18th reached a total of 13,400 units. If the union strike proceeds by the end of this month, it is expected to lead to a production stoppage of the level of 22,300 units, which is half of the total target production. If production stoppages persist, GM Korea’s target this year will be unclear.
Korea GM union, which is forced to strike, raises base salary by 120,000 won per month, 400% of normal incentive salary, 6 million won for encouragement of morale promotion, 500% increase in investment in assembly line and T / C indemnity facilities and expanding the scope of payment of production incentives. They are demanding.
Union strike
Netizens showed intense reaction.
However, the reaction of netizens looking at this is very cold. Criticism continued against the unions striking in difficult times where everyone must join forces and win through harmony. Many netizens replied: “It seems it is correct not to produce in Korea also because of the union”, “Do not resent the government because you retire and become unemployed”, “If you hope, retire..
Some say, “I didn’t keep it alive in the first place”, “Did I forget the time at the Gunsan factory?”, “It’s more interesting to keep it in deficit for 6 years” and “Show me the time I got it. seen as a model for others by retiring quickly “. There was also a reaction.
Also the Korean GM partners
He appealed for “live” and went out.
Meanwhile, Hyupsinhoe, a group of 300 GM Korea suppliers, attracted attention as it demanded that GM Korea’s repeated strikes be stopped promptly and efforts to produce. On the 19th, the GM Korea Association issued an appeal letter to the Bupyeong factory from 6:20 am to 8 am on the foreword of the Bupyeong factory.
The association said: “We are sorry that GM Korea refused to work overtime and overtime and continued a partial strike for 4 hours every week and night.” There will be a major disruption in the component supply chain. “
They appealed: “Please stop the strike”, saying: “The situation is getting worse to the point that the spare parts supply chain is blocked due to the ongoing strike, making it difficult to make a living.” “We started with hope with the release of the trail blazer this year, but our hopes are cruelly crumbling”, “I wanted to increase production in the second half of the year, but the delay in concluding the collective agreement is causing a huge production interruption “. Revealed.
Currently, the Trail Blazer is the only vehicle produced in Korea among GM’s global plants. 90% of the production rate is exported overseas and only 10% is sold to the domestic market.
If the situation persists
Withdrawal of GM Korea
It can become a reality
However, as the Korean GM union strike continues, the situation is gradually shifting in an unfavorable direction for the union. In addition, GM headquarters is under pressure, saying, “He could leave Korea.” Vice President Steve Kiefer also added a deep word at the end of the currency: “There are options for manufacturing in other Asian countries, including China.”
Not only the management, but also the partners are appealing to the union to stop the strike, and the current situation is that people also strongly criticize the union, so it is worth paying attention to the fact that the union will change its position and attitude. I hope I don’t have to face the situation of losing a cow and repairing the barn. It was Auto Post Issue Plus.
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