"New Cars Also Coming in Second Half"... Korea GM and Renault Korea Resume Operations After Concluding Labor Negotiations

Union Signing Ceremonies Held on the 24th and 16th Respectively

Korea GM labor and management held a signing ceremony on the 22nd for the 2022 wage and collective bargaining agreement and are taking a commemorative photo. The photo shows Roberto Rempel, President of Korea GM (left), and Kim Jun-oh, Head of the Metalworkers' Union Korea GM Branch, attending the signing ceremony. Photo by Kim Jun-oh

[Asia Economy Reporter Kiho Sung] Korea GM and Renault Korea have successfully concluded the signing ceremony for this year's wage and collective bargaining agreement (wage and labor agreement) without any disputes. Given the upcoming new car launches at the end of this year, this marks a significant new beginning.

According to the automotive industry on the 24th, the Korea GM labor and management held the signing ceremony for the wage and labor agreement on the 22nd at Korea GM's Bupyeong headquarters.

Roberto Rempel, President of Korea GM, Lee Chan-woo, Senior Vice Chairman of the Metal Workers' Union, Kim Jun-oh, Head of the Metal Workers' Union Korea GM Branch, and other labor-management negotiation representatives attended the ceremony and signed the 2022 wage and labor agreement jointly reached by both parties. With this, Korea GM labor and management have concluded negotiations without disputes for two consecutive years.

President Roberto Rempel stated, "I am pleased to have established a positive momentum by swiftly concluding this year's labor-management negotiations," adding, "We will make company-wide efforts to ensure the smooth preparation and successful launch of the next-generation global new vehicles, which will play a key role in the future normalization of company management."

Korea GM plans to focus on strengthening the company's profitability and securing sustainable future competitiveness along with the conclusion of the wage and labor agreement negotiations. In particular, it will be able to concentrate more on sales of key Chevrolet brand models, including the Trailblazer, which plays a pivotal role, as well as the Traverse, Tahoe, and Colorado.

[Image source=Yonhap News]

Additionally, new car launches are also anticipated in the second half of the year. Korea GM will introduce GM's premium and pickup SUV brand GMC to the domestic market in the second half. GM officially announced the introduction of the GMC brand to Korea in June and unveiled the Sierra Denali as the first launch model.

The GMC Sierra Denali is the fifth-generation latest model released in North America after continuous evolution and shares the same platform as the Cadillac Escalade and Chevrolet Tahoe.

This model is equipped with a 6.2ℓ large-displacement naturally aspirated V8 gasoline engine producing 420 horsepower according to North American certification standards, paired with a 10-speed automatic transmission. Korea GM plans to disclose detailed vehicle specifications along with the launch in the second half of the year.

Stefan Deblaes, President of Renault Korea Motors (left), and Park Jong-gyu, Chairman of the Renault Korea Motors Labor Union (right), are holding a signing ceremony for the collective bargaining agreement on the 16th at the Renault Korea Busan Plant and posing for a commemorative photo.

Renault Korea also held a signing ceremony to conclude the wage and labor agreement on the afternoon of the 16th at the Busan plant, attended by labor and management representatives.

Renault Korea labor and management, after starting with a preliminary meeting in May and conducting seven main negotiations, reached a tentative agreement. This agreement was approved with a 54.1% majority in the union members' vote held on the 31st of last month.

Before the signing ceremony, President De Vleeschauwer said, "I am confident that this decision for mutual growth between labor and management will become a solid stepping stone for Renault Korea's successful future," adding, "Let us focus our time and efforts not on competition between labor and management but on providing products and services that satisfy customers, and ensure the success of the Aurora Project, which will determine our business for the next 10 years."

Renault Korea explained that the dispute-free conclusion of the wage and labor agreement for the first time in four years allows them to demonstrate production supply stability and reliability to partner companies preparing the Aurora Project together.

The Aurora Project is a joint hybrid model introduced by Renault Korea in collaboration with Renault Group and Geely Holding Group, targeting a domestic market launch in 2024.

Along with this, a highly anticipated model is preparing for launch in the second half of the year. Renault Korea plans to release the XM3 (export name Renault Arkana) E-TECH hybrid model this fall. This vehicle has been gaining popularity globally, including in Europe, ahead of its domestic launch.

According to Renault Korea, since its first introduction to the European market in June last year, the XM3 E-TECH hybrid model has been delivered to 54,123 European consumers as of July this year. Based on export shipments through Busan New Port until last month, it recorded 70,214 units, proving its popularity.