Latest news with #GMKorea
Korea Herald
07-07-2025
- Automotive
- Korea Herald
GM Korea's labor dispute intensifies over possible walkout, facility sale tensions amid US tariff woes
An ongoing labor dispute at GM Korea, the South Korean unit of General Motors, has escalated as the union secured the legal right to strike following a breakdown in wage negotiations, sources said Monday, fueling concerns that the American auto giant may scale back its production in South Korea amid the threat of US auto tariffs. According to the sources, the National Labor Relations Commission earlier in the day suspended its mediation of wage negotiations between GM Korea's management and the union, citing deep differences in the positions between the two sides. The suspension legally allows the union to begin collective action, intensifying a standoff already marked by widespread worker opposition to the company's plan to sell GM's South Korean service centers nationwide and unutilized facilities at its plant in Bupyeong in Incheon, west of Seoul. The union has demanded the withdrawal of the asset sale plan as a precondition for the wage negotiations. In a vote carried out last month, 88.2 percent of GM Korea's 6,851 union members voted in favor of a walkout, the highest approval rate for a strike in the union's history. The dispute comes amid mounting anxiety over the possibility that GM could reduce or eliminate its South Korean manufacturing footprint if the United States maintains its 25 percent tariffs on auto imports, part of a policy pledge of US President Donald Trump during his reelection campaign. GM Korea exports approximately 410,000 vehicles annually, with about 85 percent of those shipments headed to the US. On the wage front, the union is demanding a monthly base salary increase of 141,300 won ($103) and a performance-based bonus of 41.36 million won per worker. In contrast, GM Korea's management has defended its restructuring plan, informing employees of its intent to gradually sell the company's service centers and dispose of low-utilization facilities. The company says customer support will continue via its 386 partner service centers in the country and that employees at the affected sites will retain their jobs. A union spokesperson said unless the company withdraws its sale plans, labor will hold internal discussions to raise the intensity of its actions, adding, "We are keeping all options open." (Yonhap)
Yahoo
17-06-2025
- Automotive
- Yahoo
GM Korea to buy steel from Hyundai Steel, displacing Baoshan
GM Korea Company is set to replace China's Baoshan Iron & Steel Company as a key supplier of automotive steel, as General Motors' South Korean vehicle manufacturing subsidiary looks to decouple its supply chain from China in response to continued trade tensions between Washington and Beijing, according to local reports. GM Korea is understood to have selected local steel producer Hyundai Steel Company to replace Baoshan, which is reported to have accounted for around 20% of GM Korea's steel purchases last year. This includes some 100,000 tons of sheet steel annually, valued at around KRW 180 billion (US$ 132 million). Industry sources have suggested that GM Korea has already notified Baoshan of its decision to terminate its supply contract, effective from September 2025. GM Korea is understood to have begun the process of validating steel products from Hyundai Steel. GM Korea sold a total of 499,559 vehicles globally last year, of which around 95% were exported, with the US market taking in around 85% of the company's total vehicle output. "GM Korea to buy steel from Hyundai Steel, displacing Baoshan" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Korea Herald
13-06-2025
- Automotive
- Korea Herald
Hyundai Steel to supply 100,000 tons of auto steel sheets to GM Korea
Hyundai Steel, the automotive steel manufacturing subsidiary under Hyundai Motor Group, is set to supply steel sheets to GM Korea as early as September, following the automaker's strategic decision to shift its supply chain away from China. According to reports on Friday, GM Korea recently informed China's Baoshan Iron & Steel that it would be switching its steel sheet supplier. The company is carrying out quality certification processes before receiving the materials, estimated at 100,000 tons annually and representing 20 percent of its yearly consumption, from Hyundai Steel. This is Hyundai Steel's first deal involving a significant volume, valued at approximately 110 to 180 billion won ($80.3 million-$131.5 million) in sales revenue, with an automaker other than Hyundai Motor Company and Kia. Since entering the auto steel market in 2010, it has relied on Hyundai Motor and Kia for over 80 percent of its supply volume. Industry insiders indicate that GM Korea's supply reshuffle comes after GM's strategy to decouple from China for key materials such as steel in light of the ongoing trade war between the US and China. Following the recent agreement with Hyundai Steel, GM Korea will now use Korean-made steel across its entire vehicle lineup. 'Although Chinese automotive steel is exempt from the recent 50 percent tariffs imposed by the US government on China-made steel and aluminum, the carmaker appears to have chosen Hyundai Steel to mitigate supply risk concerns arising from tensions between the two countries,' said an industry source on condition of anonymity. GM Korea manufactures models, including the Trax Crossover SUV and Trailblazer SUV, at its Bupyeong plant in Incheon, with over 85 percent of production exported to the US market. The source added that there is also a potential for the US to increase tariffs on cars that use Chinese steel. This partnership is also part of the broader alliance formed last year between Hyundai Motor Group and GM, where Hyundai Motor Group Chairman Chung Euisun and GM CEO Mary Barra agreed to collaborate on key strategic areas in the automotive sector. These include sourcing steel and raw materials for batteries as well as joint development and production of passenger and commercial vehicles, internal combustion engines, and electric and hydrogen systems. Experts say Hyundai Steel and GM Korea's new business ties could pave the way for a revamped collaboration between the steelmaker and GM in the US. 'Hyundai Steel is constructing an electric arc furnace-based steel mill in Louisiana, not far from GM's Tennessee plant,' said Kim Pil-su, a car engineering professor at Daelim University. 'As the car manufacturer is pushing to expand production in the US, it could leverage China-free auto steel sheets from Hyundai Steel.' On Wednesday, GM shared its plans to invest $4 billion over the next two years to increase vehicle production at its plants in Michigan, Kansas and Tennessee. The company expects that this expansion will allow it to produce more than 2 million cars annually in the US. In March, Hyundai Motor Group announced that Hyundai Steel looks to invest $5.8 billion to set up its first overseas production base in the US. With commercial production slated for 2029, the steel manufacturing plant's annual capacity is expected to be 2.7 million tons. This facility will specialize in steel sheets for electric vehicles.
Miami Herald
04-06-2025
- Automotive
- Miami Herald
GM Korea posts 20% sales growth in May
SEOUL, June 4 (UPI) -- General Motors Korea's sales in May jumped more than 20% despite concerns that the automaker may leave South Korea amid U.S. tariff pressures. The automaker said Tuesday that it sold 50,029 units last month, up 20.13% compared to April. The Chevrolet Trax Crossover and its derivatives posted record monthly sales of 32,232 units, up 30.12%. The Chevrolet Trailblazer also cruised well, logging global sales of 16,389 units, up 16.26% month-on-month. The solid performance was comparable to the struggle of its local rivals. The country's major carmakers like Hyundai Motor, Kia, and Renault Samsung saw their sales decline in May. "The Chevrolet Trax Crossover and Trailblazer, fully led by GM Korea from development, continue to receive positive feedback in global markets thanks to their outstanding quality and product value," GM Korea Vice President Gustavo Colossi said. However, concerns persist as the 25% tariff imposed by the Trump administration on imported vehicles is feared to weigh on GM Korea, which exports more than 80% of its vehicles to the U.S. market. Against this backdrop, GM Korea's recent decision to sell off all of its service centers and underutilized facilities fueled speculation about its potential withdrawal. Although GM Korea reiterates its commitment to operations here and denies any immediate plans to exit from the country, uncertainty looms about the company's future, according to experts. "I don't think that GM Korea would pull out any time soon as it invested billions of dollars here in recent years. But if the high tariff continues, the company may be forced to reconsider its strategy," Daelim University automotive professor Kim Pil-soo told UPI. "The newly elected president should hurry to strike a deal with the U.S. government so that the tariff will fall below 10%. Then, GM Korea's operation will become sustainable," he said. Lee Jae-myung from the main opposition Democratic Party won a presidential election Tuesday to become the country's 21st state head. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
04-06-2025
- Automotive
- UPI
GM Korea posts 20% sales growth in May
SEOUL, June 4 (UPI) -- General Motors Korea's sales in May jumped more than 20% despite concerns that the automaker may leave South Korea amid U.S. tariff pressures. The automaker said Tuesday that it sold 50,029 units last month, up 20.13% compared to April. The Chevrolet Trax Crossover and its derivatives posted record monthly sales of 32,232 units, up 30.12%. The Chevrolet Trailblazer also cruised well, logging global sales of 16,389 units, up 16.26% month-on-month. The solid performance was comparable to the struggle of its local rivals. The country's major carmakers like Hyundai Motor, Kia, and Renault Samsung saw their sales decline in May. "The Chevrolet Trax Crossover and Trailblazer, fully led by GM Korea from development, continue to receive positive feedback in global markets thanks to their outstanding quality and product value," GM Korea Vice President Gustavo Colossi said. However, concerns persist as the 25% tariff imposed by the Trump administration on imported vehicles is feared to weigh on GM Korea, which exports more than 80% of its vehicles to the U.S. market. Against this backdrop, GM Korea's recent decision to sell off all of its service centers and underutilized facilities fueled speculation about its potential withdrawal. Although GM Korea reiterates its commitment to operations here and denies any immediate plans to exit from the country, uncertainty looms about the company's future, according to experts. "I don't think that GM Korea would pull out any time soon as it invested billions of dollars here in recent years. But if the high tariff continues, the company may be forced to reconsider its strategy," Daelim University automotive professor Kim Pil-soo told UPI. "The newly elected president should hurry to strike a deal with the U.S. government so that the tariff will fall below 10%. Then, GM Korea's operation will become sustainable," he said. Lee Jae-myung from the main opposition Democratic Party won a presidential election Tuesday to become the country's 21st state head.
