SEOUL, KOREA- Korea’s car industry is down in the dumps ahead of the summer vacation season. Amid sluggish domestic consumption and a delay in exports caused by a decline in production, the industry is also mired with tough wage negotiations.
According to industry sources, Hyundai Motor, Kia Motors, GM Korea, and Renault Samsung will halt plant operations from July 29 to August 2 for a companywide summer vacation. Workers at Ssangyong Motor will take summer vacations for six days starting from July 31, the foundation day of its labor union, to August 5.
Chances are high that car production will decline by 350,000 units in July due to partial strikes at Hyundai Motor and GM Korea.
According to the Korea Automobile Manufacturers Association, the number of cars produced by Korea’s five major carmakers last month stood at 394,386 units, down 6.5 percent year on year. Against this backdrop, four out of the five carmakers, excluding Renault Samsung, underwent labor disputes as their wage negotiations with the unions ended in a rupture.
Monday, July 22nd, 2013