Kazem, President of Korea GM, Business Trip to US Headquarters Early This Month to Discuss Current Issues

On the 16th, at the 'Chevrolet Trailblazer Media Showcase' held at Paradise City Chroma in Jung-gu, Incheon, Kaher Kazem, President of GM Korea, introduced the new car. The Trailblazer is a sports utility vehicle (SUV) made by Chevrolet, equipped with a 1.2ℓ gasoline E-Turbo Prime engine and a 1.35ℓ gasoline E-Turbo engine. Photo by Hyunmin Kim, Yeongjongdo kimhyun81@

[Asia Economy Reporter Ki-min Lee] Kaher Kazem, president of Korea GM, who recently won a court ruling to lift his travel ban, traveled to the United States on a business trip earlier this month.

According to industry sources on the 25th, President Kazem met with GM headquarters executives in the U.S. earlier this month to discuss the shortage of automotive semiconductors and Korea GM's future plans.

President Kazem was indicted last July on charges of illegally dispatching workers and was subjected to a travel ban. In response, Kazem filed a lawsuit against the Minister of Justice, requesting the cancellation of the travel ban.

The Seoul Administrative Court suspended the effect of the Ministry of Justice's extension of the travel ban on the 16th of last month, and on the 23rd of this month, ruled in favor of Kazem in the main lawsuit to cancel the travel ban.

Seeing the urgent issues Korea GM faces, such as the automotive semiconductor supply shortage and new car production, Kazem appears to have immediately embarked on the business trip right after the travel ban was lifted. It is known that Kazem had difficulties communicating with headquarters due to the travel ban blocking his trips to the headquarters.

During this trip, Kazem reportedly reported on the status of the Korean market and plant operations and grasped the headquarters' plans for automotive semiconductor supply. He is believed to have requested that Korea GM be allocated sufficient semiconductor quantities.

However, considering that the Bupyeong plant's operations were halted after Kazem's trip and production was reduced even after resuming, it seems that the headquarters has not presented any effective measures to resolve the semiconductor supply shortage.

Korea GM reduced production at its domestic plants starting February due to the global semiconductor shortage and suspended production at Bupyeong Plant 1 and Plant 2 from the 19th to the 23rd of this month.

Additionally, Kazem is reported to have conveyed the labor union's position to headquarters, requesting the allocation of new car production volumes to domestic plants. The Korea GM labor union demanded a commitment to allocate new car production volumes during last year's wage and collective bargaining negotiations, but the management rejected the request.

Korea GM's labor and management regularly hold the 'Future Development Committee' to discuss securing future competitiveness, including new car volume allocation. Headquarters likely strongly urged President Kazem to improve relations with the labor union. Ahead of this year's wage negotiations, Korea GM's labor and management conducted five months of negotiations last year, during which repeated strikes caused production losses.

An industry insider said, "President Kazem traveled to the U.S. immediately after the travel ban was lifted. Although detailed information about the trip is hard to obtain, it is believed that discussions were held regarding semiconductor supply and vehicle production, which are urgent issues for Korea GM."

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