SOUTH KOREA: GM Korea to outsource CKD, lay off 1,000
GM Korea wants to outsource production for CKD kit exports to subcontractors by 2014, endangering the jobs of at least 1,000 employees in Korea.
GM executive Tim Lee announced plans to outsource production of 'completely knocked-down' cars for export at GM Korea headquarters. CKD kits accounted for 62% or 1.28m units of GM Korea's total production of 2.08m last year.
According to the company, over 10,000 people work in production full-time, and 2,000 work on CKD production and packing. The kits are assembled in countries such as Russia, India and China.
GM Korea plans to lay off 1,000, or 10%, of the workforce through voluntary retirement or other redundancy measures. GM blames the high production cost in Korea.
Over the past several years, labour costs in other overseas plants of GM decreased but in Korea they rose, the automaker said.
The company's labour union has already voiced strong opposition and vowed to scupper the plan.
This Case Study examines the factors that led to US auto giant GM's bankruptcy in 2009, describes its rescue plan, and assesses its effectiveness....
After being entertained for the last couple of weeks by Germany v France over Mercedes' choice of air conditioner refrigerant (colleague Simon Warburton has now learned so much about R134a v r1234yf h...
Business Monitor International's Egypt Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independen...
Business Monitor International's Australia Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with indepe...
A 7 September win for the Liberal-National parties coalition in Australia's federal election would lead to General Motors Holden ending manufacturing. So claims Phil Horton, the managing director of B...
Business Monitor International's South Korea Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with inde...
- THE WEEK THAT WAS: iOS (and Android) in the car
- INTERVIEW: Ford of Europe's chief, Stephen Odell
- COMMENT: Russian auto jitters in Crimea poker
- GENEVA WRAP: Europe still struggles, future bright
- Jaguar Land Rover's lightweight future
- Jaguar recruits Beckham as China brand ambassador
- Geely to axe domestic brands
- Tata mulls platform collaboration with Chery
- EXCLUSIVE: Renault axes another EV
- Car sales in Western Europe up 5.1% in February
- Tesla: The Californian start-up that made head way on the automotive giants
- Dacia: The no frills automotive brand, that is becoming a serious world contender
- China’s One-Child Policy is Shaping a New Automotive Landscape
- PLDB - vehicle cycle plan database (annual subscription)
- Auto Parts Manufacturing in China