GM to close Sth Korean Gunsan Plant.

[lari1eye]

With all the excitement of the Winter Olympics, GM international boss has announced the closure of one of four GM Korea manufacturing plants at Gunsan. GM Korea make the... Barina, Spark, and Trax.. for Holden Oz market. This plant makes about 260,000 vehicles per year.
The other three car plants are also in doubt.

Reuters 16 2 18
In what they thought were meet-and-greet introductions, senior officials agreed to work with the global automaker on problems at GM Korea, according to South Korean officials with direct knowledge of the meetings.

Last week, Barry Engle, GM's International Operations Manager, made another visit, meeting with the head of state-run Korea Development Bank, which owns 17 percent of GM Korea. Bank and government officials said Engle asked for financial support and in return, KDB suggested an audit before it would consider committing any fresh funding.

South Korea officials said they left reassured they were making progress working through issues, albeit slowly.

Then came the bombshell.

On Tuesday morning, GM announced it would shut its Gunsan plant, which employs 2,000, and decide the future of the remaining three other Korean plants within weeks.

“GM only talked about the difficult situation they were in, and asked for our help, but did not say a word about the closure before. It was a shock to us,” a South Korean government official said.

The discord and lack of communications point to rocky negotiations ahead as South Korea seeks to prevent further job losses and provide support for a critical part of its manufacturing sector while avoiding criticism for spending tax payers’ money to support private industry.

[russellw]

Welcome to GM tactics.

[solarite_guy]

Do you suppose it is a Chinese concession?

[lari1eye]

Sure looks like some sort of concession. If Korean factories are losing money for GM, they go the same way as Holden, Opel etc.
The number of vehicles sold on China is incredible.
In 2017, China’s total vehicle sales increased 3.0% Year on Year to.. 28.9 million units, whereas US auto sales fell ~1.8% YoY to 17.2 million vehicles last year.
And Shanghai-GM joint venture, with just over 4 million sales, is fourth in the Chinese market behind VW, Toyota and Honda.

[solarite_guy]

The Chinese have always loved the Buick.

I wonder if China made some offer to GM in the smoke filled back rooms?

How is Ford sales there?

[hackney]

Originally Posted by solarite_guy

The Chinese have always loved the Buick.

I wonder if China made some offer to GM in the smoke filled back rooms?

How is Ford sales there?

They dropped by 18% in January.They are having problems @ the moment in China(which is the worlds biggest market.)Cheers

[solarite_guy]

Originally Posted by hackney

They dropped by 18% in January.They are having problems @ the moment in China(which is the worlds biggest market.)Cheers

They may need to figure out what is going on there.

I wonder if China doesn't like the Thailand operation?

[hackney]

Originally Posted by solarite_guy

They may need to figure out what is going on there.

I wonder if China doesn't like the Thailand operation?

Ford pulled out of Japan a few years back,they didn’t want the things it seems.Hardly any(I did not see any) on the roads in Tokyo.Lots of “Kei” class cars & heaps of Priuses & lots of imported exotic stuff.Cheers

[EgoFG]

Originally Posted by hackney

They dropped by 18% in January.They are having problems @ the moment in China(which is the worlds biggest market.)Cheers

Having many friends in China (I work there maybe 10 weeks per year) the reputation of the Fords for Quality is above locally made GM and even Toyota.

[malazn mafia]

Originally Posted by EgoFG

Having many friends in China (I work there maybe 10 weeks per year) the reputation of the Fords for Quality is above locally made GM and even Toyota.

Wow, how did Ford pull that one off . I'm a Ford fanatic, and dislike Toyotas , but will be the first to begrudgingly concede that Ford product is not as well engineered or durable as Toyota.

[EgoFG]

Originally Posted by malazn mafia

Wow, how did Ford pull that one off . I'm a Ford fanatic, and dislike Toyotas , but will be the first to begrudgingly concede that Ford product is not as well engineered or durable as Toyota.

To Quote one colleague "the steel is thicker, and they develop less rattles".

Sorry, I can only quote opinion, I got no science

[hackney]

Originally Posted by EgoFG

Having many friends in China (I work there maybe 10 weeks per year) the reputation of the Fords for Quality is above locally made GM and even Toyota.

Maybe so,but as I alluded to they have tried to reverse their struggling sales,but they have actually gone down by a massive 18% while their competitors are steaming ahead.They have a lot of work to do in China it seems.They pulled out of Japan quite awhile ago(they were on the nose there.) I never saw a Ford on the road in Tokyo or Kyoto.Cheers

[XRtowcar]

So Holden’s will come from China eventually?

[lari1eye]

Originally Posted by XRtowcar

So Holden’s will come from China eventually?

Last year when Ford closed their Australian factories, they said there would be 20 new models coming by 2020.
Then Holden said they would have ...25... new models coming by 2020.
Maybe this is where they will be coming from.
Just like our phones, clothes, car parts..etc

[d@rk51d3]

Originally Posted by XRtowcar

So Holden’s will come from China eventually?

I'm led to believe they were already pretty much assembled here with imported chinese parts

[solarite_guy]

Phones, clothes, car parts. Hmmmmm? Portent of things to come.

What do most do these days when a phone or a piece of clothing needs repair?

What a second, I can't find the word repair in the dictionary anymore.

Car parts from China? That gets it's own story.

[Vormund]

GM is probably going to only exist in China and the US at rate they are going.

[383hq]

Not surprised.
Very good discipline and quality, however anyone in the corporate world understands where Sth Korea sits re global labour costs - where even the USA is cheaper

[danzvtil]

GM couldn't run a chook raffle. Chinese Holdens are coming, the quality can't be any worse than they are now.
Out of our 4 work cruzes, one boiled dry due to a coolant line being made of cheese and dumping the coolant, I've checked the others, and caught 2 before they overheated, booked them in for repair,these are only 2 years old BTW.

[commodorenutt]

Plenty of other GM Global plants in many other low cost countries. Unlikely cars will come from China for some time yet. Recently launched Equinox comes from Mexico, and things like the Astra come from Poland or some other Eastern Euro country.

[sr71]

I was on a 70000 m2 job site 15 years ago. Requiring a large number of of Welders. The local Boilermakers had welds that weren't passing inspection. Next thing, in come the Korean Boilermakers, with the reputation of being the best Pipe Welders in our country. Their was huge pride over their work. Just like a Miami Engine Builder thread, it made me question why other areas didn't have the same work ethic.
This seems like an unfair business decision, lacking respect to the workers who did their job with pride. Sounds familiar doesn't it...

[janddbone]

GM basically have had no plan whatsoever for about a decade.

[janddbone]

I have two Kia's these days. Some electrical stuff is a little dodgy. The actual welding etc is top notch. Interiors are reasonable.