Blog: Dave LeggettGMDAT's hoped for edge

Dave Leggett | 22 July 2003

Interesting piece in the latest issue of the Institute of the Motor Industry's (IMI) house magazine, Motor Industry Management. Richard Feast interviews Nick Reilly, former chairman of Vauxhall Motors and current boss of GM Daewoo Auto and Technology (GMDAT). It's pointed out that wage rates in South Korea are not as low as in China, but employers are not burdened by the social and welfare add-ons that hold back labour productivity in Europe. Also, Koreans have a well developed work ethic and a penchant for very long working days. GM's gameplan is to exploit GMDAT's low-cost engineering and manufacturing resources for the benefit of GM and its not all about exporting cars. GMDAT's tool and die department has already started to quote for jobs internally within GM. As GM's loss-making operations in Europe continues to shed jobs, GMDAT is going in the opposite direction, recruiting manufacturing and engineering people. Some of the vehicle production targets look pretty ambitious, but if GMDAT hits them, it'll be well on the way to financial recovery.


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