GM Headquarters' 'Strong Warning'... "May Leave Korea Due to Strike"

"Difficulty in Additional Investment in Korea Due to Strike... Alternatives Exist in China and Others"

Last September, the Korea GM Bupyeong plant came to a halt due to a labor union strike (Photo by Yonhap News).

[Asia Economy Reporter Kim Ji-hee] “Strikes make additional investment in Korea difficult. They are making Korea a non-competitive country.”

A senior executive of General Motors (GM) in the United States issued a strong warning to the Korean GM labor union. He hinted at the possibility of withdrawal, saying that if the strike continues, production volume in Korea could be moved to other countries.

Steve Kiefer, Senior Vice President of GM and President of Overseas Operations, said in an interview with a foreign media outlet on the 18th, “The Korean GM union is holding vehicle production hostage and causing significant financial damage,” adding, “It is making new investments, such as new car allocations, difficult.” Kiefer is an executive overseeing most GM plants worldwide except for North America and China.

He stated, “Due to the union’s strike, production disruptions will reach 20,000 units by the end of this weekend,” and predicted, “Considering the 60,000 units lost due to COVID-19, it will be difficult for Korean GM to make a profit this year.”

Korean GM estimates that about 17,000 units of production have been disrupted so far due to the union’s partial strike that began on the 30th of last month. Since the union has already extended the strike and refusal of overtime and special work until the 20th, this figure is expected to expand to 20,000 units. As a result, Korean GM’s original goal of surpassing the break-even point this year, led by new models such as the Trailblazer, has also become uncertain.

Kiefer, who pointed out that the union’s actions weaken Korea’s competitiveness, said, “If this issue is not resolved within weeks, there will be long-term effects.” He added, “There is also the option of producing in other Asian countries, including China.” Industry insiders view Kiefer’s remarks as a reference to the ‘Korea withdrawal rumors’ that have surfaced whenever Korean GM has faced a crisis.

This content was produced with the assistance of AI translation services.