A production line at a GM Korea Co. plant in Incheon, west of Seoul. (Yonhap)
SEOUL, Feb. 5 (Korea Bizwire) — Management crises are sweeping over South Korean units of foreign automakers.
Financially-troubled SsangYong Motor Co. stalled operation of its plant in Pyeongtaek, 70 kilometers south of Seoul, last Wednesday after several subcontractors refused to supply essential parts and demanded payment.
The South Korean unit of Indian carmaker Mahindra & Mahindra Ltd. said production will resume on February 8, but any return to work likely depends on negotiations with the subcontractors.
GM Korea Co., sustaining a production loss of 25,000 cars as a result of a partial strike held by the labor union last year, has been directly affected by the worldwide shortage of semiconductors for automobiles.
The South Korean unit of General Motors Co. has decided to cut vehicle production by half at its No. 2 Bupyeong plant, just west of Seoul.
The plant manufactures Chevrolet Malibu sedan. The plant also makes compact SUV Chevrolet Trax, 85 percent of which are being exported overseas.
Cutting the production is bound to take a heavy toll on the company’s performance charts.
Renault Samsung Motors Corp, the only car-making company that has failed to reach a tentative agreement with its labor union over wages this year, is still struggling over voluntary resignation or salary raises.
At 57.5 percent, more than half of the members of the company’s labor union have voted for a full-on strike, but are rather hesitant to take action due to public opinion and a lack of work.
Kevin Lee (kevinlee@koreabizwire.com)
