Bloomberg reports Kia has missed analyst profit estimates for the second quarter after net income slipped to $965 million at current conversion rates. On average, analysts estimated the South Korean automaker would bring in somewhere around $1.1 billion, though Kia did see its revenue increase by 8.4 percent. The automaker said its less-than-estimated profit results came down to increased spending as the company strove to market its new Pride subcompact and K9 luxury sedan (a model that will be
Automotive News reports Hyundai is facing a strike in Korea. Workers lead by Moon Yong, the head of the company's labor union, are threatening to take action unless they receive better pay and reduced work hours. Earlier this week, 70-percent of the 45,000-member union voted to give leaders the power to enact walkouts. Hyundai is already well aware of the damage that strikes can do – the company reportedly estimates labor disruptions between 1987 and 2008 cost it sales of around one millio
Kia has navigated around a potential strike by organized labor in Korea. According to Automotive News, the manufacturer joined GM Korea and Ssangyong Motor Company in reaching agreements with the companies' workers for better pay, pending a "yea" vote by employees. Kia workers successfully negotiated a 5.2 percent wage increase as well as bonus pay worth over $6,600 at current conversion rates. In addition, each worker will be granted 80 shares in the company. GM Korea, meanwhile agreed to give
Hyundai and Kia are having a great 2011 so far, with sales numbers reaching new heights seemingly every month. The summer sun might disappear, however, as storm clouds appear to be looming on the South Korean horizon. According to Reuters, Hyundai's home market management is working with the worker's union to negotiate a new wage deal. Talks are reportedly not going very well, and the union has walked away from the table ahead of a final round of discussion before everyone breaks for a holiday.