Korean Unions Mad At Akerson
Last month, GM CEO Dan Akerson said that GM might move production away from South Korea if tensions with North Korea escalate. Korea labor unions were not amused, saying that Akerson was using the crisis as a pretext to gain the upper hand in upcoming labor talks.
Last week in Detroit, Akerson told GM’s South Korean union leader that he won’t pull GM out of South Korea. He also said he is unhappy with the Korean union, and that he will bring up the matter this week with South Korea’s President Park Geun-hye, when the “Iron Lady” will visit the U.S. this week.
Now, the union is fuming.
“We are upset by his remarks. We did not go all the way to the U.S. to hear that,” union spokesman Choi Jong-hak told Reuters.
More than four out of 10 Chevrolet vehicles sold globally, are made in South Korea.
In January, rumors about GM shifting production to underutilized European factories made the union threaten “war” if GM does that. Knowing the militant Korean unions, this is not just a figure of speech.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Hmmmmmm on the bright side even a minor Korean conflict gives the General due cause to relocate production, utilize disused Opel facilities, and screw the militant unions (who may be drafted) all at the same time.
Take your payoff and go Dan. Playing the Nork card in a labor negotiation just pisses off the entire South Korean nation, which has been living with the threat for decades. Smooth move Akerlax.
"More than four out of 10 Chevrolet vehicles sold globally, are made in South Korea." This really took me by surprise. If most Chevys sold in China are made in China, and given that Chevrolet's international footprint is otherwise fairly limited, does this mean that most Chevys sold in NA are made in Korea? It's hard to think of a more iconically American brand than Chevrolet. Things have very clearly changed.
Akerson, well known diplomat, greatest CEO ever, and product planner of unimaginable capability has only one flaw from his time spent as a junior officer in the US Navy. He issues orders and edicts to the ranks and expects them to snap to. When they don't, he has a chat with their NCO, in this case the Prez of South Korea, to get help in getting the ranks to obey orders, and to assume the "tugging the forelock" position, while laying down their molotov cocktails. Good luck, Danny Boy!