Minsheng Party Gwangju Branch "Questions on GGM Casper Electric Vehicle Competitiveness"

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] The Minsaengdang Gwangju Metropolitan City Party expressed doubts about the competitiveness of Gwangju Global Motors (GGM)'s announcement to produce the Casper electric vehicle.

On the 22nd, the Minsaengdang Gwangju City Party released a press statement saying, "Although GGM is wrapped in political language such as 'Gwangju-type job' and 'labor-management win-win model,' in reality, low wages and labor rights are being severely violated," adding, "Is this a response to the worsening public opinion in Gwangju following Hyundai Motor Company's announcement on September 15 to build a new factory producing electric vehicles in Ulsan Metropolitan City? Various complex situations must be taken into account."

If Hyundai Motor's announcement holds true and the Ulsan plant, with an investment of 2 trillion won, produces 150,000 units annually, serving as a key base to dominate the global electric vehicle market, GGM will become a simple assembly plant entrusted with low-priced vehicles. This will inevitably increase the administrative and financial burdens on Gwangju City as well as political burdens.

The city party stated, "GGM already has debts amounting to 350 billion won and recorded a loss exceeding 20 billion won last year," emphasizing, "Especially in the situation where interest burdens are increasing sharply due to rising interest rates, the budget and financing methods for converting the existing production line to electric vehicles, as well as employment retention policies for parts suppliers going out of business, must be transparently disclosed and go through procedures to obtain citizens' consent."

They also demanded that Hyundai Motor announce the increase in vehicle price due to the installation of batteries in the Casper electric vehicle, the contract regarding the appropriate production volume, and plans for new models other than the Casper to prepare for future volatility. Along with this, considering that it is expected to take more than nine years to achieve cumulative production of 350,000 units, supplementary measures to protect workers' rights are also required.

Furthermore, they said, "GGM is ultimately maintained at a level that prevents collapse. Even now, it should be sold to a strong private company to grow into a sustainable and competitive enterprise, and through this, transform into quality jobs that guarantee high wages and labor rights, including labor-management negotiations," adding, "We will continue multifaceted efforts to find ways for GGM to grow into a good company together with citizens and put them into practice."

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