On Wednesday, Kim Dong-jin, vice chairman of Hyundai Motor Company, used the American automaker General Motors as an example to illustrate why Hyundai and its Kia affiliate must freeze its workers salaries.
"GM now faces a situation in which it actually loses money every time it sells a vehicle," Mr. Kim said at the Korea International Trade Association in southern Seoul. He listed GM vehicles’ quality problems; loss of standards for spare parts by too much outsourcing; and lack of competitiveness because of high wages and union relations.
Mr. Kim said Hyundai is to use Toyota Motor Company as the model to follow, stating the Japanese company does not have labor disputes like General Motors and has already frozen its employees’ wages (though he must have missed this post).
Afterwards, Kim went on to discuss Hyundai receiving approval from the Chinese government to open a second engine plant in China after Hyundai partners with and transfers its technology to a local firm.
"GM now faces a situation in which it actually loses money every time it sells a vehicle," Mr. Kim said at the Korea International Trade Association in southern Seoul. He listed GM vehicles’ quality problems; loss of standards for spare parts by too much outsourcing; and lack of competitiveness because of high wages and union relations.
Mr. Kim said Hyundai is to use Toyota Motor Company as the model to follow, stating the Japanese company does not have labor disputes like General Motors and has already frozen its employees’ wages (though he must have missed this post).
Afterwards, Kim went on to discuss Hyundai receiving approval from the Chinese government to open a second engine plant in China after Hyundai partners with and transfers its technology to a local firm.
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