KoreaTechToday - Korea's Leading Tech and Startup Media Platform
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government
No Result
View All Result
KoreaTechToday - Korea's Leading Tech and Startup Media Platform
No Result
View All Result
Home GM

Korean Car Manufacturers, Samsung, Ssangyong, And GM To Undergo Drastic Restructuring

 776 total views,  1 views today

KoreaTechToday Editor by KoreaTechToday Editor
PUBLISHED: August 27, 2019 UPDATED: August 27, 2019
in GM, Samsung, Ssangyong
0
Korean Car Manufacturers, Samsung, Ssangyong, And GM To Undergo Drastic Restructuring
Samsung Renault's Busan Plant

Samsung Renault's Busan Plant

The falling car demand is forcing three large Korean car manufacturers to shuffle and downsize their workforce. These companies include GM Korea, Renault Samsung Motors, and SsangYong Motor. Representatives from the manufacturers also blamed unfavorable business conditions for the restructuring.

Reports said that Renault Samsung has already communicated the decision to its union leaders. It cited the expected further drop in the sales of their Nissan Rogue and other automotive models. Data from the company showed that the sales of Nissan Rogue, the company’s most sold product, dropped by 40% from 100,000 from last year to 60,000 this year. The drop was said to be due to the production losses that the company incurred during union-led strikes.

A Renault Samsung Motor official said, “Although we realize it’s necessary to downsize the workforce, the exact size or method hasn’t been decided yet.” He also cited that employees will be offered to choose between a voluntary retirement program or circular leaves of absence.

“The management will make several suggestions when it begins wage negotiations with the union next month.” Renault’s Busan plant will also decrease their production rate of Nissan Rogues from 60 units per hour to 45. To combat the drop in the Nissan Rogue’s sales, the company plans to increase its production of their XM3 compact SUV which they would then sell to European markets. Talks are still on the way on whether Samsung will be able to acquire production rights from Renault SA.

SsangYong Motors Layoff Officials

SsangYong Motors reportedly reduced the number of senior officers in their payroll by 20%. A 10% cut on the employees’ salaries accompanied the layoff in hopes of stabilizing the company’s finances. The company has been under immense pressure to up their sales after they reported a 78 billion loss on the first half of 2019.  This loss is almost double of their loss from the previous year.

In a memo to employees on Aug. 19, CEO Yea Byung-tae said the company would continue to see a winding road ahead. So, the company needs to consolidate to ensure stability.

“To survive in our competitive industry, and position SsangYong to win in a fast-changing future, we must cut costs and focus on the most valuable work,” SsangYong’s CEO, Yea Byung-tae, said. “We must work together to make sure that massive layoffs in 2009 do not occur again.”

General Motors Korea has reported low utilization rates due to the sluggish market. The issue has forced them to shut down their Gunsan plant and cut their employees’ wages. Company officials have also been suggesting the discontinuance of second shifts to reduce costs.

Featured image grabbed on Renault’s website.

What’s your thoughts?
+1
0
Upvote
+1
0
Clap
+1
0
Clap
+1
0
On fire
+1
0
Meh
+1
0
Clap
+1
0
Tags: CarsEmploymentGmLayoffsManufacturingSamsungSsangyong

Related Posts

LG & Samsung
Samsung Renault's Busan Plant
LG

Samsung Electronics & LG Electronics post record first-quarter earnings

April 8, 2022
KT will soon commercialize 5G SA in South Korea: Samsung offers common core
Samsung Renault's Busan Plant
5G

KT will soon commercialize 5G SA in South Korea: Samsung offers common core

February 4, 2022
Samsung beats Intel to become the largest semiconductor company
Samsung Renault's Busan Plant
Chips

Samsung beats Intel to become the largest semiconductor company

February 3, 2022
Samsung Introduces World’s First-ever MRAM Based In-Memory Computing
Samsung Renault's Busan Plant
AI

Samsung Introduces World’s First-ever MRAM Based In-Memory Computing

January 27, 2022
Samsung launches portable beam projector for travelers
Samsung Renault's Busan Plant
Samsung

Samsung launches portable beam projector for travelers

January 5, 2022
Samsung to integrate NFT into its next-gen smart TVs
Samsung Renault's Busan Plant
NFTs

Samsung to integrate NFT into its next-gen smart TVs

January 5, 2022
No Result
View All Result

Follow Us

FREE NEWSLETTER




PRODUCTS

Most Popular

  • 5 Best Korean to English Translation Apps

    0 shares
    Share 0 Tweet 0
  • Top South Korean Tech Products to Look Out for in 2021

    0 shares
    Share 0 Tweet 0
  • Top Eight Promising EdTech Startup Companies in South Korea

    0 shares
    Share 0 Tweet 0
  • 5 All-Time Best Rom-Com K-Dramas to Watch

    0 shares
    Share 0 Tweet 0
  • Korean tech giants to focus on future innovations & sustainability actions at CES 2023 

    0 shares
    Share 0 Tweet 0
  • Top Nine Mobile MMORPG in South Korea for 2020

    0 shares
    Share 0 Tweet 0
  • World’s First 5G Robot Café has a Seoul Opening

    0 shares
    Share 0 Tweet 0
  • Top 10 Must-Have Korean Apps You Need When Visiting in Korea

    0 shares
    Share 0 Tweet 0
  • South Korea Improves Digital New Deal with the Data Dam Project

    0 shares
    Share 0 Tweet 0
  • Coway Changes Name After Netmarble’s Aquisition

    0 shares
    Share 0 Tweet 0
  • About Us
  • Account Page
  • application form
  • Cookie policy
  • Default Redirect Page
  • homepage
  • Login
  • login form
  • LogOut
  • Newsletter
  • Privacy Policy
  • Register
  • Reset Password
  • Sample Page
  • Subscription Plan
  • Terms of Use
  • test
  • test
  • testpage
  • TOS Page
  • Visitor Inside User Page

Copyright © 2022 KoreaTechToday | About Us | Terms of Use |Privacy Policy |Cookie Policy| Contact : [email protected] |

No Result
View All Result
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government

Copyright © 2022 KoreaTechToday | About Us | Terms of Use |Privacy Policy |Cookie Policy| Contact : [email protected] |