SOUTH KOREA: GM Korea to shed jobs via voluntary retirement
General Motors Korea plans to slash its headcount by launching a "voluntary retirement" scheme open to its 7,000 office workers, a company source told Reuters.
GM Korea spokesman Park Hae-ho, confirmed the plan was aimed at "enhancing its organisational efficiency" and said it is the first time the company has made such a plan applicable to all its office workers, following an earlier scheme limited to senior office workers.
Park did not disclose a target for the reductions, but said its 10,000 production workers will not be affected.
The move is causing concerns about a restructuring at GM Korea, which is being squeezed by rivals Hyundai Motor and its affiliate Kia Motors as well as by imported vehicles from Germany, Japan and other countries.
The South Korean market is shrinking due to the global economic slowdown and as heavy household debt cuts demand. GM Korea is not the only carmaker to cut jobs in response. The South Korean unit of French carmaker Renault SA this year cut 800 workers, or about 15% of its workforce, using a similar programme.
GM's South Korean market share has fallen below 10% since 2008. The carmaker had a 9.4% share from January to October this year in the domestic car market while Hyundai and Kia controlled around 80%.
After GM's plan was disclosed, a GM Korea union spokesman said it is like GM Korea "declared a war" against the union following the carmaker's earlier announcement that it will exclude South Korea from the production of its next-generation Chevrolet Cruze model.
Union officials said they were told on 1 November that the new Cruze will be produced in Europe and four other regions, sparking speculation that GM may move output to Europe to help boost efficiency at its money-losing unit there. .
GM Korea, which ranks third in South Korean car sales after Hyundai and Kia, started receiving applications for its latest plan on Tuesday and will close it on 14 December. Under the programme, workers will receive compensation of up to two years' salary, two years' school tuition support and a car voucher worth KRW10m (US$9,200), according to a 20 November company notice obtained by Reuters.
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....
I wouldn't have thought that, with the current state of play in the European auto industry, there'd be too much niggle in the union ranks. But we've reported on a bit this week....
The analysts writing this report forecast Global Automotive Head-up Display market to grow at a CAGR of 28.61 percent over the period 2012-2016....
What are Opel's 3,000 odd workers at its Bochum plant in the heavily-industrialised region of North-Rhine Westphalia (NRW) thinking today?...
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
Opel's main union at its Bochum factory in Germany appears resigned to the fact the site will close at the end of next year and is citing an unconfirmed compensation figure of EUR100,000 (US$129,000) ...
An i30 was the one millionth car produced at Hyundai's factory in Nošovice, Czech Republic this week. Production started at the 'greenfield' plant on 3 November 2008, when a previous generation i30 mo...
- ANALYSIS: The models to be axed by PSA's Tavares
- THE WEEK THAT WAS: Carlos sharpens the knife
- Management briefing: UK engine manufacturing (1)
- THE WEEK THAT WAS: The bubble car returns
- PRODUCT EYE: Audi RS Q3
- 2014 NYIAS: List of world premieres
- 2014 BEIJING SHOW: world debuts list updated
- Discovery Sport to replace Land Rover's Freelander
- GM CEO recall comments draw senator's retort
- Tata restructuring production at all plants
- Jaguar Land Rover: Providing remarkable growth throughout the economic downturn
- PLDB - vehicle cycle plan database (annual subscription)
- Ford Motor Company - Strategy and SWOT Report
- Plunkett's Automobile Industry Almanac 2014: Automobile Industry Market Research, Statistics, Trends & Leading Companies
- Global light vehicle materials market 2008 to 2028