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China's rise, global restructuring wither GM's Korea division

An article in the Daily Kanban suggests the sun is setting on GM Korea, and it could already be well into dusk. GM Korea came about when General Motors, along with co-investors SAIC and Suzuki, bought Daewoo Motors from parent company Daewoo Group in 2001; it had a previous tie-up with GM, a joint venture that ended in 1992, although Daewoo cars were based on GM cars until 1996. Over the decade following the purchase, it became such an important part of operations that it was renamed GM Korea in 2011, "to reflect its heightened status in [the] global operations of GM." Just two years later, the printed rumors were that the subsidiary responsible for a fifth of Chevrolet's global production could be shutting down. The division's sales were down almost 21 percent through November of last year, counting domestic South Korean sales, exports, and CKD – Complete Knock Down – products. That makes the labor strife, already an issue for four years, even more acute, reports say the subsidiary will lose $36 million a year if it can't get the job and wage cuts it wants, and government concessions can't make up for the losses. And it gets worse, so head over to Daily Kanban to read the rest of the story.

GM seeks national mandate for zero-emissions cars

DETROIT — General Motors says it will ask the federal government for one national gas mileage standard, including a requirement that a percentage of auto companies' sales be zero-emissions vehicles. Mark Reuss, GM's executive vice president of product development, said the company will propose that a certain percentage of nationwide sales be made up of vehicles that run on electricity or hydrogen fuel cells. GM says a nationwide program modeled on such a requirement in California could result in 7 million electric vehicles, or EVs, on U.S. roads by 2030. California wants 15.4 percent of vehicle sales by 2025 to be EVs or other zero emission vehicles. Nine other states, including Maryland, Massachusetts, New Jersey and New York, have adopted those requirements. In January, California Governor Jerry Brown set a target of 5 million zero-emission vehicles in California by 2030. The Trump administration criticizes California's ZEV mandate, saying it requires automakers to spend tens of billions of dollars developing vehicles that most consumers do not want, only to sell them at a loss. Reuss told reporters that governments and industries in Asia and Europe "are working together to enact policies now to hasten the shift to an all-electric future. It's very simple: America has the opportunity to lead in the technologies of the future." A national mandate also would create jobs and reduce fuel consumption, CO2 emissions and "make EVs more affordable," Reuss added. GM, the nation's largest automaker, will spell out the request Friday in written comments on a Trump administration proposal to roll back Obama-era fuel economy and emissions standards, freezing them at 2020 levels instead of gradually making them tougher. Under a regulation finalized by the Environmental Protection Agency at the end of the Obama administration, the fleet of new automobiles would have to get 36 miles per gallon by 2025, 10 mpg higher than the current requirement. But the Trump administration's preferred plan is to freeze the standards starting in 2021. Administration officials say waiving the tougher fuel efficiency requirements would make vehicles more affordable, which would get safer cars into consumer hands more quickly. GM on Thursday said it doesn't support the freeze, but wants flexibility to deal with consumers' shift from cars to less-efficient SUVs and trucks.

GM adds 1,200 jobs at Detroit-Hamtramck plant

General Motors is making a big move at its Hamtramck, MI, factory, announcing it will add a second shift and hire over 1,200 workers within the next several months. It's expected that by early 2016, the factory will employ over 2,800 workers to build the Chevrolet Volt, Impala, Malibu, Cadillac ELR, and by early next year, the new CT6. According to GM Hamtramck spokesperson Courtney Zemke, 40 of the 1,200 positions are for salaried employees, while the remainder will be hourly positions. As for where these employees will go, positions are being made available across the factory, so GM isn't focusing on any particular area for its new hires. It's a similar story behind the hiring surge itself. GM said in its press release that the "second shift is necessary to meet forecasted market demand," a position Zemke reiterated. It's a matter of demand across the plant's portfolio, rather than any one particular product seriously outstripping supply. Naturally, the United Auto Workers is happy with the move. "The workforce at Detroit-Hamtramck is second to none," UAW Local 22 Shop Chairman Don LaForest said in the attached release. "We appreciate the opportunity to expand our UAW-GM family." Hiring is going on now, with the second shift slated to get underway in early 2016. GM's Detroit-Hamtramck Assembly to Add Second Shift and More Than 1,200 Jobs Plant will nearly double its workforce by early 2016 2015-10-22 DETROIT – General Motors is nearly doubling its workforce at Detroit-Hamtramck Assembly by adding a second shift and more than 1,200 hourly and salaried jobs. The addition of a second shift will increase the plant's workforce to approximately 2,800 people when hiring is completed. The second shift is necessary to meet forecasted market demand for the five cars produced at Detroit-Hamtramck. "This is the result of the award-winning vehicles Detroit-Hamtramck produces and the confidence GM has in our team to build world-class quality for our customers," said Plant Manager Gary West. Second shift hiring is underway, and the shift is scheduled to begin operations in early 2016. "The workforce at Detroit-Hamtramck is second to none," said UAW Local 22 Shop Chairman Don LaForest. "We appreciate the opportunity to expand our UAW-GM family." The 4.1 million-square-foot Detroit-Hamtramck Assembly opened in 1985. GM has invested $1 billion in the plant over the last six years, making it one of the company's most-agile manufacturing facilities in North America.