Voluntary resignations fail to resolve GM Korea’s deficit

As GM Korea continues looking for ways to tighten its belt to restructure the struggling company, some 2,500 employees have signed up for voluntary redundancy. But the automaker has to take more measures, such as reducing labor expenses and lowering the cost-to-sales ratio, to complete a turnaround, industry experts said Sunday.From the voluntary redundancies applications made as of Friday, GM Korea is expected to save up to 400 billion won ($370 million) in labor and overhead costs.Given that t

March 4, 2018

Kumho Tire's unionists vow to do whatever it takes to block sale of embattled company

Unionized workers of Kumho Tire Co., the country's second-largest tiremaker, said Saturday they will do whatever it takes to block its creditors' plan to sell the embattled company to a foreign company.On Friday, Kumho Tire's creditors, including the state-run Korea Development Bank, announced they will plan to sell the financially troubled company to Qingdao Doublestar Co."We will do whoever it takes to block the push for the overseas sale," union representatives told reporters at a plant in Gw

March 3, 2018

GM Korea suffers record operating loss last year

GM Korea suffered a record operating loss of 800 billion won ($736 million) last year, further aggravating its high number of debts largely due to a strategy shift by its head office, according to provisional data submitted by the carmaker.The local unit of the US carmaker suggested the estimated figures to the government while asking for cash last month. Data showed that the company posted annual losses for four straight years. In 2014, GM Korea saw 148.6 billion won in operating loss, followed

March 1, 2018

Hyundai hires ex-BMW executive for newly launched performance car unit

Hyundai Motor, South Korea’s leading automobile manufacturer, has launched a new division for high performance cars and motorsports, and appointed a former BMW M executive as vice chief, the company said Thursday.The new division will focus on expanding Hyundai’s presence in the global performance car arena by adding new performance models and releasing Veloster N, a high performance version of its hatchback, this year, the company said. Hyundai’s performance car lineup i30 N (Hyundai Motor)Thom

March 1, 2018

Wage talks at GM Korea end without progress

Resumed wage talks between union representatives and management of GM Korea ended without progress on Wednesday, while unionized workers held a sit-in protest in the heart of Seoul, demanding the carmaker withdraw its decision to shutdown a plant in Gunsan.Both parties were resuming the talks for the first time since GM‘s surprise announcement to close one of its three plants last month. The management reportedly came with an intensive restructuring plan to freeze all wages and skip bonuses, as

Feb. 28, 2018

Mahindra partners LG Chem for India’s EV push

Mahindra & Mahindra, an Indian conglomerate and the owner of South Korean carmaker SsangYong Motor, will jointly develop rechargeable batteries to accelerate its electric vehicle business, the company said Monday evening.“LG Chem will develop a unique cell exclusively for India application and also supply lithium-ion based on nickel-manganese-cobalt chemistry with high energy density,” Mahindra said in a statement.The battery cells will be deployed in electric vehicles to be manufactured by Mahi

Feb. 28, 2018

Korea to scrutinize GM’s transfer pricing, cost to selling price ratio

　With an investigation into GM’s financial records slated to begin this week, the Seoul government appears to be upping the pressure against the US automaker by suggesting a tax audit.　Kim Sang-jo, chairman of the country’s corporate watchdog Fair Trade Commission, said Tuesday he would discuss with the National Tax Service a tax audit over the US automaker’s transfer pricing and high rate of cost to selling price. 　Demands to comb through the US firm’s tax status have also been rising from the

Feb. 28, 2018

GM Korea freezes wages of 500 workers ahead of plant shutdown

GM Korea Co., the South Korean unit of General Motors Co., froze the base wages for 500 executives and team leaders early this year in a drive to cut costs ahead of a local plant shutdown, the company said Wednesday. As the 500 workforce does not belong to GM Korea's 13,000-member union, the company didn't need to seek an agreement for its actions. The company also asked them to reduce the use of corporate cards, according to GM Korea. The move came before GM announced on Feb. 13 it would shut o

Feb. 28, 2018

BMW’s new X4 gets muscular, sportier look

BMW unveiled its second-generation new X4 midsize sports activity coupe after four years, boasting an eye-catching sporty design and driving performance, the company said.The event took place in Germany last week, before its world premiere at next month’s 2018 Geneva Motor Show.Adjustments have been made to the car body to create a more dynamic look.The length, width and wheel base of the SAC has been extended by 8.1 centimeters, 3.7 cm and 5.4 cm, respectively, to 4.75 meters, 1.92 m and 2.86 m

Feb. 26, 2018

Hyundai Rotem wins W62.1b order in Canada

Hyundai Rotem, a tank and train-making affiliate of Hyundai Motor Group, won a 62.1 billion won ($57.7 million) order to supply a total of 24 cars for driverless trains to the Richmond Airport Vancouver Line, the company said Monday.The cars produced at Hyundai Rotem’s factory in Changwon, South Gyeongsang Province, will be shipped to Canada by 2020. The driverless trains will cover a distance of 18.5 kilometers, connecting Vancouver International Airport and the city. They will transport up to

Feb. 26, 2018

Due diligence on GM Korea set to begin later this week

The state-run Korea Development Bank will begin its due diligence on GM Korea Co., the South Korean unit of General Motors Co., later this week after the US carmaker demanded financial support from its second-largest stakeholder, government officials said Sunday. Last week, GM and the Seoul government began talks to discuss ways to turn its loss-making unit, GM Korea, around after the US.carmaker announced its plan to shut one of its four car assembly plants in the country by May. GM also said i

Feb. 25, 2018

GM postpones maturity date, withdraws push for Bupyeong factory as collateral

General Motors on Friday postponed the due date for the 700 billion won ($650 million) it had loaned to the South Korean unit and withdrew its demand for the Bupyeong factory to be designated as security, the company said. During GM Korea’s board meeting held at its plant in Bupyeong, Incheon, GM deferred the maturity date until the inspection into the firm’s financial status ends, the company said. The payment was initially due this month. All eyes were also set on whether GM would continue to

Feb. 23, 2018

Jaguar Land Rover Korea aspires to sell 18,000 units this year

Jaguar Land Rover Korea said Friday it will aim to sell 20 percent more vehicles this year than it did in 2017, amounting to some 18,000 units.“Last year, Jaguar Land Rover Korea sold over 10,000 units for two years in a row. We have a slew of models, including electric vehicles, in line to be introduced to Korean drivers this year. We will also extend the number of service centers to become a customer-centered brand,” said Baek Jung-hyun, the managing director of Jaguar Land Rover Korea during

Feb. 23, 2018

[Herald Interview] GM could ditch more plants: lawmaker

GUNSAN, North Jeolla Province -- As controversy persists over the decision by General Motors to pull out of Gunsan, a lawmaker representing Gunsan said that the US carmaker could ditch more factories in Korea to press the government.“After all, the company is pressurizing the government … If the answers are not enough to satisfy them, the next step could be made,” said Rep. Kim Kwan-young of the Bareun Future Party in an interview with The Korea Herald on Wednesday, a day after he met Barry Engl

Feb. 22, 2018

[FROM THE SCENE] Despite closure, Gunsan GM workers anchor hopes on normalization

GUNSAN, North Jeolla Province -- Jeon Byung-sun, 53, recalls six years ago when GM’s Gunsan factory was running 24 hours a day.“The factory boomed 5-6 years ago when we produced 1,200 units of Lacetti and Rezzo combined. The factory ran 24 hours. Back then Gunsan was a cash cow for GM,” said Jeon, a worker at GM’s Gunsan plant. Despite the proud memories he has, Jeon couldn’t believe it when he first heard from his colleagues last week that the US carmaker will shut down the plant, saying that t

Feb. 22, 2018

Hyundai aims to sell 90,000 Santa Fe SUVs in Korea this year

Hyundai Motor Co. said Wednesday that it aims to sell 90,000 units of its all-new Santa Fe sport utility vehicle (SUV) in the domestic market this year by capitalizing on rising demand for recreational vehicles.The target was announced by the carmaker at the official launch event for the vehicle and comes as the South Korean carmaker needs the new SUV to bolster sales not only at home but in key overseas markets like the United States.Hyundai didn‘t provide its target sales figure for global mar

Feb. 21, 2018

Tension escalates as GM raises stake with gov.

A day after a surprise visit to the parliament, General Motors moved fast to find a compromise with the Seoul government in the form of a trillion-won support plan.The company suggested a meeting with the trade minister this week, amid growing speculation over the US carmaker’s plans.The Ministry of Trade, Industry and Energy confirmed Wednesday morning that Barry Engle, president of GM International, has requested a meeting with Minister Baek Ung-kyu before returning to the US on Thursday. But

Feb. 21, 2018

Hyosung to build spandex factory in India

South Korean textiles giant Hyosung will construct a spandex factory in India by 2019 as part of its global expansion strategy, the company said Tuesday. The latest agreement was made last week when Cho Hyun-joon, Hyosung chairman and CEO, met with Indian Prime Minister Narendra Modi in Mumbai, India, following a meeting with Vietnamese Prime Minister Nguyen Xuan Phuc in Vietnam earlier this month.“India is one of the world’s largest textile markets, and we expect the consumer market size to gro

Feb. 20, 2018

All eyes on GM’s new product allocation

General Motors’ decision to shut down its assembly plant in Gunsan, North Jeolla Province, last week has fanned questions regarding the fate of the remaining two factories in the Bupyeong district of Incheon and Changwon, South Gyeongsang Province. Barry Engle, president of GM International, urged GM Korea and stakeholders to show progress in ongoing discussions by the end of February, “as we are at a critical juncture of needing to make product allocation decisions.”“GM’s new model assignment w

Feb. 19, 2018

Tension escalates over inspection into GM Korea

Tension is escalating over the South Korean government’s inspection into GM Korea, following the automaker’s decision to shut down a factory here last week. State-run Korea Development Bank, the second-biggest stockholder of the local unit with 17.02 percent shares, is currently looking into GM Korea’s management, including high-interest loans levied by the US headquarters. The country‘s financial watchdog Financial Supervisory Service is examining GM Korea’s research and development expenses, w

Feb. 18, 2018