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Opel Plans Cuts Off Korean Auto Worker Union
Adam Opel AG’s plan to end shipments of cars made in South Korea appears likely to cripple the militant union whose workers make the vehicles, Reuters reports.
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Adam Opel AG’s plan to end shipments of cars made in South Korea appears likely to cripple the militant union whose workers make the vehicles, Reuters reports.
Four General Motors Co. factories in Korea have been supplying Europe with the Opel Karl minicar and a portion of Opel Mokka small crossover vehicles. But when GM sold Opel to PSA Group in August, the French carmaker said it would stop buying cars from Korea when those models switched to PSA platforms.
Last year GM Korea shipped some 134,100 vehicles to Europe, equal to about 20% of its total output, according to Reuters. Last week Opel CEO Michael Lohscheller declared that by 2020 the brand will be importing almost 200,000 fewer vehicles per year than it does now.
Unless GM Korea replaces that volume, declares one union official, “We have no choice but to die.” Reuters notes that GM has repeatedly said it wants to revive its Korean operations.
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