General Motors (GM) Korea is reportedly planning to boost engine production at its South Korean plant as it continues to face pressure from its labour union to increase manufacturing presence in the country. According to a report by Reuters News, GM Korea will now produce as many as 45,000 engine units per annum (upa) initially, which are used in its Chevrolet Equinox model, for export to North America, while it reportedly plans to raise this further to 120,000 upa. The labour union at the automaker welcomed the news, with unnamed union officials stating, "We have won a project to secure jobs of union workers". When contacted by IHS Automotive, GM Korea declined to confirm or comment on the news.
Significance: GM Korea manufactures more than 20 different types of engines at its South Korean plants, which are located at Changwon, Bupyeong and Gunsan, according to IHS Automotive light-vehicle engine data. The automaker produced as many as 927,426 engine units at its plants in South Korea last year, representing a fall from 1,072,427 units produced the previous year. The move comes after the company's labour union revealed their wage and other work-related expectations for 2015 recently. Apart from wage increases, the union members were also demanding that the company produce more models – such as the new Trax, Malibu, Impala, Cruze – in South Korea, in contrast to the US parent company's decision to manufacture them elsewhere. GM Korea has explicitly revealed that labour costs are becoming increasingly unsustainable in South Korea, while recent media reports have suggested that GM is considering other, more favourable business locations within Asia, which is becoming increasingly evident according to the latest data released by the automaker.
