Mexican Media Brands
GM: No Plan to Exit Korea as Labor Costs Jump Nearly 50%
General Motors Co. tells Reuters it won't close any of its four auto plants in South Korea, even though production is down and its labor costs there have soared almost 50% in five years.
#labor #workforcedevelopment
Share
General Motors Co. tells Reuters it won't close any of its four auto plants in South Korea, even though production is down and its labor costs there have soared almost 50% in five years.
Still, GM Korea CEO Sergio Rocha warns that Korea's rising labor costs "may impact our sustainability" in the country unless something can be done quickly.
Last year GM avoid a strike in Korea by promising to produce the next-generation Chevrolet Cruze there beginning in 2017. Reuters notes that two GM assembly plants in Korea are underutilized since GM decided to phase out its Chevrolet brand in Europe at the end of 2015. GM Korea supplied most of those vehicles.
Since then, Rocha says, the unit has offset about one-third of lost shipments to Europe by hiking exports of the Chevy Trax small crossover to the U.S.
RELATED CONTENT
-
GM Unit Stresses Driver Training in Autonomous Cars
General Motors Co.’s Cruise Automation unit says it puts backup drivers and auditors through extensive training before allowing them to participate in real-world autonomous vehicle tests.
-
Young Auto Engineers Say Their Employers Don’t Measure Up
Only one-third of U.S. automotive engineers below the age of 36 agree that their work experience matches the way their employers’ portray themselves publicly, according to new research.
-
GM, PSA Execs Rush to Build Support for Opel Sale
Top executives from General Motors Co. and PSA Group are scrambling to build support among alarmed European government and labor leaders for a plan to integrate GM’s Opel unit with PSA.