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GM Korea Easing Downsizing Talks, Gunsan Plant May Not Close Entirely

GM Korea has slightly eased the tension between management and the labor union by agreeing to reconsider the Gunsan plant’s restructuring, which was set to enforce a single-shift system as oppose to the current double-shift system, according to reports.

Despite management’s willingness to reconsider, GM Korea’s made it no secret that downsizing appears inevitable. Due to Chevrolet announcing it will pull out of the European marketplace, where much of the plant’s volume is exported to, management seems to have their hands tied.

Putting downsizing into perspective, GM Korea has set the new production target 29.5% lower than a year ago. With a lower production target and over 3,000 employees, something has got to give.

All signs point to a stall more than a change of heart. According to management, GM Korea does not want to restructure the shift schedule and upset their workers. However, what appears music to the labor unions ears may just prove smoke on the water.

A possible saving grace for the labor union is managements willingness to explore expansion within the country, in the form of both market share and investments.

Only time will tell the direction management plan to go. Even if management work with the best interests of the labor union in mind, the numbers just do not add up. Although laying off workers seems inevitable, maybe GM Korea can restructure in such a way to reduce the projected number of 1,100 job losses. Perhaps exporting some vehicles to Australia may help with that.

Stay up-to-date with GM Korea’s Gunsan plant reconstruction here at GM Authority.

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Comments

  1. I don’t think we in Australia want anymore of GM Korea’s cars… They certainly do not compete with the offerings of so many other brand in so many different ways, even product from Kia and Hyundai seems like a more sane choice to many Australian buyers!
    I wouldn’t mind seeing the Opels return as Holden’s. They have a comprehensive model lineup with a car in every segment, and would better suit many Australians European tastes; hence why Hyundai and Kia have gone down the European designed road.

    That’s just my opinion, right or wrong 🙂

    Reply
  2. The successful designs by Hyundai, were penned in California. The designs are being copied, or enhanced, by every manufacturer in the world. Mercedes Benz included.

    Maybe the designs were done by an ex Australian surfer, who just wants to try out California Waves, and Wacs.

    🙂

    Reply
  3. Correct me if I’m wrong, but I don’t recall ever seeing something significant come out of GM Korea aside from the 5th gen camaro, and I’m pretty sure other, more capable division within GM had to refine the final product a llittle.

    Reply
    1. Chevrolet Aveo, Captiva, Tosca and recently Trax.

      Basically every small cars sold in Asia-Pacific were from GM Korea(Daewoo) and GM Korea was one of very few companies making profits during the subprime mortgage crisis in GM group.

      You haven’t seen any significant car out of GM Korea in recent years because GM hasn’t invested anything for R&D for years. I really like to see GM Korea back to Daewoo(unlike Holden, Korean government is still the second largest shareholder of GM Korea through the state owned banks) and develop own cars like Hyundai(they have design centre all over the countries, buy mostly engineered either in Korea)

      GM is always like this. Saab, Holden…they buy companies then they ask the government for more subsidies whilst holding workers as hostages.

      Reply

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