Wage negotiations between GM Korea management and the local labor union are progressing, with the labor union agreeing to the latest wage agreement.
In a recent vote, the labor union representing GM Korea workers gained a 66-percent approval vote held over the last two days, with roughly 4,600 union members of the 7,012 total workers voting in favor of the new agreement.
GM Korea labor and management previously held a meeting on May 27th, but failed to come to an agreement. GM Korea workers rejected an offer from management that included a 30,000-won ($25.76 at current exchange rates) increase to the base worker salary, and 4.5 million won ($3,864 at current exchange rates) in incentives. After further negotiations, management also added in a car maintenance coupon, gift coupons, and advance payment of incentives, sweetening the deal for workers and enticing approval.
The new labor agreement arrives amid widespread production difficulties stemming by the ongoing global microchip shortage. It’s estimated that the chip shortage has reduced GM Korea production figures by 80,000 units through the first half of the 2021 calendar year, and while production facilities continue to operate, they do so at lowered capacity.
2021 Trailblazer on the line at GM’s Bupyeong Plant
GM Korea posted a drop in sales this year, losing just under 20 percent in domestic sales. The sales dip follows a sales slump experienced throughout the 2020 calendar year due to the COVID-19 pandemic.
Table Title
| MARKET | JUNE 21 SHARE | JUNE 20 SHARE | YTD 21 / YTD 20 | YTD 21 | YTD 20 | YTD 21 SHARE | YTD 20 SHARE |
|---|---|---|---|---|---|---|---|
| SOUTH KOREA | 100% | 100% | -19.30% | 33,160 | 41,092 | 100% | 100% |
| TOTAL | -19.30% | 33,160 | 41,092 |
However, despite the difficulties of the microchip shortage and lost sales, demand for GM Korea-built vehicles remains high in the U.S., which serves as GM Korea’s primary export market. The GM Korea-built Chevy Trailblazer and Buick Encore GX models have both shown success in that regard.
Table Title
| MODEL | Q2 21 / Q2 20 | Q2 21 | Q2 20 | YTD 21 / YTD 20 | YTD 21 | YTD 20 |
|---|---|---|---|---|---|---|
| CHEVROLET TRAILBLAZER | +248.45% | 23,343 | 6,699 | +621.68% | 48,367 | 6,702 |
| BUICK ENCORE GX | +183.54% | 26,244 | 9,256 | +276.82% | 44,679 | 11,857 |
| TOTAL | +210.79% | 49,587 | 15,955 | +401.35% | 93,046 | 18,559 |
Looking ahead, General Motors’ recent recall of all models of the Chevy Bolt EV and Bolt EUV for potentially dangerous batteries has delayed the launch of the latest 2022 model-year vehicles in the Korean market. However, the recall could be seen as potentially beneficial as the battery packs will be fixed ahead of the rollout.
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Comments
Korea is nothing but trouble, gm should bail from this country.
They need to improvise, well the former Daewoo Motors, I would say to focus on one main profit to compete, for GM Korea to succeed their aim should be for the Korean Luxury market to have another name successful to sell these export models to the United States.
It is called Genesis!
Ever since the Japanese car companies had their fair share of Lexus, Acura, and Infiniti as what you got left out their for South Korea to compete with the Genesis from Hyundai is Cadillac.
Selling Korean made Cadillacs is like a revival of a luxury renascence that Korean built Cadillacs will be a success as GM Korea is one of the only game in town, to say to sell Korean made luxury vehicles as to aim slowly to the US Market.
So what would it take for GM Korea to focus on Hyundai’s Genesis?
Design a car called Grand Deluxe as a knockoff of a 2nd Generation Rolls Royce Ghost to be more aero dynamic, that probably President Jae In Moon could take this Cadillac Grand Deluxe as his presidential car.
Cadillac HY5 an upper scale Buick Encore that is sold for South Korea.
After these Korean made Cadillacs be very successful in South Korea as their main aim is towards Genesis, then GM could export them to the United States and yet Genesis sales ended up with a domestic rival in the US market with these Korean made Cadillacs as GM Korea could help GM to aim target at US customers of what they have done with those Korean made Cadillacs that could help with Cadillac’s portfolio of US customers perfecting these Korean made Cadillacs within their American made counterparts.
Exactly what is Korea building. Haven’t been able to get Sparks, Traxs or Trailblazers in months? Are they even still in business?