GM Korea Worker Strikes Hamper Output Of Crucial Crossover Models
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Daily strikes at GM Korea assembly plants are hurting the production output of popular General Motors crossover models like the Buick Encore and Chevy Trailblazer.
According to Reuters, GM Korea workers have been staging four-hour strikes twice a day since October 30th. These strikes have so far cost the company 17,000 vehicles in lost production, GM international operations president Steve Kiefer said, and it expects that number to hit 20,000 by the end of this week. GM currently builds the Buick Encore, Chevy Trax, Chevy Trailblazer and Buick Encore GX at the Bupyeong Assembly plant in Korea, while the Chevy Spark is produced at Changwon Assembly in the south of the country.
Kiefer told Reuters that the strikes, coupled with losses experienced earlier in the year due to the COVID-19 pandemic, are creating a dire situation for GM with regard to its Korean operations.
“We’re basically being held hostage in the short term by lack of vehicle production,” Kiefer said. “That’s having a very significant short-term financial impact.”
GM and the South Korean government agreed to a $7 billion bailout package for GM Korea in 2018 in which GM provided $6.4 billion in funding, while the state-owned Korean Development Bank (KDB) put up $750 million. GM agreed to maintain its presence in the country for 10 years as part of the agreement, but Kiefer said that consistent labor relations issues in the country are forcing it to look elsewhere in Asia for future long-term investment.
“We would prefer to make this model work but as of now, we’re losing confidence that we’re going to be able to continue to invest in that country,” Kiefer told the publication, later adding that it could begin to build more vehicles for export in China eventually.
Chevy Trailblazer production starts at GM’s Bupyeong plant in Incheon.
The KDB has encouraged both GM Korea and the labor union that represents workers to make concessions on their demands, but the two sides have so far failed to reach an agreement. GM wants workers to sign a two-year deal with a signing bonus equivalent to $7,230 USD, while workers want to continue with a one year deal and a signing bonus equal to about $19,880 USD at current exchange rates.
A worker also told Reuters the Korean labor union wants to secure future investment for the No. 2 plant at the large Bupyeong facility, which currently makes the Chevy Malibu sedan for local consumption.
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The day GM thinks the US has forgotten China is a threat they’re going to leave Korea so fast it’s going to make their head spin.
GM and Barra have to be the most affected company in the world by Trump’s election 4 years ago.
how about farmers? just this year they received nearly $50 billion in welfare despite trump’s claim that the trade war with china would be easily won.
how has gm changed because of trump? the envision is still going to be imported from china.
Make these vehicles at Orion. There is enough capacity there.
Yes please. It’s not like the Bolt sells in any real volume. It consistently sells less than 20k units, even with massive discounts. The dated sonic regularly outsold the Bolt until like 2019, largely because production of the Sonic appears like it was capped at a certain number. I think GM and Ford are really just trying to get that next bailout.
If GM were serious they should think about moving back to Australia. The reason they won’t, is because the Australian government refused to invest more money into them. They took over the Holden brand and finished up crucifying us over their financial failures. Good riddance and don’t come back here
Ray
Australia’s top selling auto brands in 2019
1. Toyota 2. Mazda. 3. Hyundai 4. Mitsubishi
5. Ford 6.Kia. 7.Nissan. 8. VW
9. Honda. 10. Holden
Go crying to Toyota.
The Australian government stopped subsidizing foreign companies for assemling cars in Australia. Then all 3 foreign automobile companies closed their factories in Australia.
Live with it.
You know there’s a factory that re-opened in Canada recently……
OTOH GM has to think how much Asian production and customers they’ll lose if they leave, it’s not like H/K don’t have this issue.
Yes, GM Assembly Oshawa shut down last year is re opening to build trucks in 2022 ,they could handle the new Trailblazer or Encore GX in a cost effective quality manner ,if give allocation as they did in the past for US and Canadian buyers for 100 years ,finally Detroit HQ.realized that they needed award winning production facilities back into production while we transition to more EV’s here in North America !
Guestt you are correct. If Oshawa could get a good volume of popular vehicles, its is the 9B architecture. It would be excellent for GM, Unifor would be the happiest and since 95% of the produced Encores and TrailBlazers are sold in the US & Canada, another extra $M USD in transportation from Korea could be saved. That is without factoring in the loss expected of 20,000 units.
That new 2021 Chinese Buick Envision looks great. We need domestic imports.
This is what happens when you have only a single source of production of a product; one would have imagine General Motors CEO Mary Barra starting a twin factory in Mexico or the United States to ensure against this type of problem.
Screw that they want a 2 year deal for almost 20,000 signing bonus and then what? 30,000 on the next and so on so forth for that price tag you could have us Americans build those cars. #bringchevrolethome
As i am a man where related from GM Korea Labour Union, i want to say obviously. JUST GIVE THEM ‘ONE’ ELECTRIC CAR, Not It ALL. Then they stop the fight surprisingly. Main reason they fight is afraid of future. Because Global GM has no plan to adding a car in BP2 plant. Remember, MONEY IS NOT THE REASON. Real problem is a Launch of PRODUCT.
They eat Dogs