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GM to gradually exit South Korea: Reuters

  • General Motors (GM) will gradually scale back its operations in South Korea amid rising labor costs and "militant unionism," Reuters says.
  • GM's South Korean operations currently account for around a fifth of the company's annual global production.
  • The high cost of labor is exacerbated by the relative strength of the won.
  • Labor cost per vehicle in South Korea this year is estimated to be around 40% higher than the average for GM across its global operations.
Comments (5)
  • but they are still a cheap labor force. Ask what the
    CEOs and exes are making, the ones that sit on their butts, or at the golf course. These people make 1/16 of the wages of these teapublicans
    11 Aug 2013, 07:13 PM Reply Like
  • Okay... That wasn't really a constructive comment, but I will say this - this is probably good news for the American US based automobile production industry. It's kind of funny that the US car makers moved all those jobs offshore and now are finding that may not have been the best idea. If you wait long enough things always come full circle.
    11 Aug 2013, 08:15 PM Reply Like
  • Wispokerguy is right, not constructive whatsoever. Troll.
    11 Aug 2013, 08:26 PM Reply Like
  • With a few exceptions, most US automaker's foreign production is to serve those particular markets, not to bring cheap imorts into the US.

     

    It is now a policy of most automakers globally, to produce the high volume sellers in a market, in that market.
    Read, Hyundai Sonata/Toyota Camry/Honda Accord/Nissan Altima/Vollkswagen Passat in the US

     

    While GM produces alot of vehicles in China, it does not import them for sale in the US.

     

    That said, this may not bode very well for Hyundai/Kia.

     

    It appears the cost advantage they once enjoyed on ther Korean built models has essentially evaporated.
    12 Aug 2013, 09:07 AM Reply Like
  • The term "militant unionism" has a nice ring to it
    12 Aug 2013, 05:04 AM Reply Like
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