#Korea

GM has rocky relations with its Korean unions, and the relations will get a lot rockier if what Germany’s Handelsblatt says is true. According to the report, GM is seriously looking into moving most of the production of the Opel Mokka to Europe.

Currently, the hot selling SUVlet is made in South Korea only. Says Reuters:

When there was labor unrest in South Africa, the UAW was quick to spend union dues for a long trip to the scenic South African locale, ostensibly to show their solidarity with South African union brothers who, coincidentally, fought against Mercedes and Volkswagen. Back home, the UAW pulled a whole packet of race cards. It headlines, a bit strenuously: “South Africans have more rights than workers in Mississippi.”

It would have been more a propos if the UAW would have flown to South Korea to show solidarity with workers who are about to go on strike against GM, the company, ooops, that is partially owned by the UAW.

To say the Sorento’s transformation from rugged body-on-frame SUV to car-based softroader has been a sales success is putting it mildly. In the first 27 months of production Kia shifted more Sorentos than they did the 8 years prior. Sales numbers like that catapulted the Korean krossover (couldn’t help it) from CX-9/Xtera/Murano competition to 7th place in the midsized battlefield. Three model years later, Kia is spicing things up with a refresh. I know what you’re thinking: why bother looking at a refresh? Because 2014 brings enough changes to call the 2014 Sorento a redesign.

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.

Guess which South Korean carmaker prompted the South Korean government to tighten its rules about overstating their cars’ mileage? Under new South Korean government rules “aimed at reassuring consumers after Hyundai Motor Co’s fuel economy fiasco last year” it can cost more than $900,000 if one is caught with overly optimistic mileage claims, Reuters says.

Yesterday, South Korea’s Financial News said Kia is talking to Georgia state officials about constructing a new plant, called “KMMG 2” with an annual output of 150,000 units. This in addition to the plant Kia already has in West Point, GA. Reuters asked around, and received nothing but denials.

Last week, GM CEO Dan Akerson said that GM might move production away from South Korea if tensions with North Korea escalate. Today, Korea labor unions said Akerson is using the crisis as a pretext to gain the upper hand in upcoming labor talks.

It’s not just the UAW that is upset about free trade agreements. The Koreans are likewise. The offices of the Korea Automobile Importers and Distributors Association were raided by investigators of the country’s Fair Trade Commission, the Financial Times reports. The agency alleges that BMW, Mercedes-Benz, Volkswagen and Toyota Motor were involved in price collusion.

Usually, we are not big on COTY’s, but this one is too good to pass up. According to lore, which is sometimes parroted in the comments at TTAC, there is mutual hate between Koreans and Japanese. This did not stop Korean journalists from crowning a Japanese car as Korea’s Car of the year: The Toyota Camry. This was so momentous that Toyota Korea president Hisao Nakabayashi broke into tears when the award was presented at a Seoul hotel.

GM wants to thin out its South Korean workforce while shifting production to Europe’s higher-wage locations. Korean unions already see it as a declaration of war.

Labor leaders in South Korea are scrambling to convince GM to retain production of the Chevrolet Cruze in South Korea, though GM says that the move to 5 global facilities is a done deal.

GM told Reuters that it won’t build the next-generation Chevrolet Cruze in South Korea. Reuters says this is “raising the possibility that GM might shift the assembly to Europe to help boost efficiency at its money-losing unit there.”

The EU sent a warning shot across the bow of protectionist France. Brussels refused France’s request to monitor car imports from South Korea. According to the Wall Street Journal, import surveillance could have been Europe’s first step toward blocking or reversing tariff cuts instated by a free trade deal between the EU and Korea.

Strong demand is spurring Chevrolet to import more Chevrolet Spark minicars from Korea – though Chevrolet won’t release their initial projections or how many Sparks will be imported in the next round.