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Union Warns on GM’s Decision Not to Build Chevy Impala in Korea
General Motors Co.’s decision on Tuesday not to produce its large Chevrolet Impala in South Korea “threatens the existence” of GM operations there, the country’s metalworkers union claims.
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General Motors Co.’s decision on Tuesday not to produce its large Chevrolet Impala in South Korea “threatens the existence” of GM operations there, the country’s metalworkers union claims.
The announcement also portends contentious labor talks this year with the typically militant union, which tells Reuters it anticipates a “prolonged and persistent fight” with GM.
GM Korea, which employs some 17,000 workers, has been a low-cost production hub for many of the small cars the company sells worldwide. But demand has waned because of low fuel prices, the collapsed Russian market and GM’s phase-out of its Chevrolet brand in Europe. At the same time, labor costs have surged about 50% in Korea over the past five years, according to the company.
The union has been pushing GM to add new models in Korea, where two of its four assembly plants are operating well below capacity. Last September GM warned it might cut production in the country.
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