The Korea Times

Hyundai union wants to influence production amount

By Park Jin-haiThe trade union at Hyundai Motor will demand that the company consult with labor before it decides on its overseas production levels.“Management should immediately review the possibility of establishing new plants here,” the union said on Wednesday. “It also should agree with the union on the volume of production of its domestic and global markets.”It is the first time the labor union has made such a demand. Union leaders will soon discuss the demand with management once the union makes a final decision on the agenda.Hyundai has been increasing production in its overseas markets while cutting local production, upping the sense of insecurity for employment among union members.The percentage of domestic production in Hyundai’s global output has plunged in recent years. It plummeted to 37.9 percent last year, from 94.5 percent in 2001. It has been forecast to drop to 28 percent by 2020.According to labor’s production survey, Hyundai has plants in China, the United States, Brazil, India, Czech Republic, Turkey and Russia. It said out of

May 13, 2015By Park Jin-hai

Companies

Hyundai Vice Chair flies to Russia

By Park Jin-haiChung Eui-sunvice chairmanHyundai Motor Vice Chairman Chung Eui-sun departed for Russia to establish contingency plans against the worsening productivity of its Russian plant on the heels of the falling ruble.The Russian auto industry has been hit hard in the wake of the recent global economic slump. Coupled with the collapse of the ruble, global auto giants have taken steps either to reduce their production or to stop operations there.General Motors retreated from Russia, stopping operations at its local assembly plant.However, Hyundai Motor has been taking the opposite course.Chung has ordered its Russian officials to expand its market share in preparation for when the Russian economy starts to rebound.Last year, Hyundai and its sibling firm Kia Motors sold a total of 374,000 cars in Russia.In order to buffer the effects of the falling ruble, Hyundai has lowered its exports to Russia to less than 10 percent, while running its Russian plant at maximum capacity.Previously Hyundai’s exports to Russia accounted for 40 percent of total sales made in the country. As

May 12, 2015By Park Jin-hai

Companies

POSCO Energy mulls over setting up investment firm

By Park Jin-haiPOSCO Energy is considering establishing a joint investment firm with the National Pension Service (NPS) to prop up its overseas investment projects.According to the proposed deal under consideration, POSCO Energy, the NPS and other investors would raise 570 billion won for the investment fund, officials said.The NPS is considering investing 400 billion won and POSCO Energy 170 billion won, officials said.An NPS official said, “We are reviewing the establishment of the investment fund. The talks are in the initial stage and we have yet to fix exact investment amounts.”The official declined to be named.Separately, a POSCO Energy official said, “We are discussing the possibility of establishing a joint investment firm. But, it is too early to comment on the details of the deal with NPS.”    When the deal is closed, financial investors will provide 70 percent of funds required to set up a special purpose corporation for the construction of overseas power plants, and POSCO the remaining 30 percent.The investors in return will receive

May 11, 2015By Park Jin-hai

Companies

PHEV buyers to get subsidies next year

By Park Jin-haiThe government plans to provide subsidies for people who buy plug-in hybrid electric vehicle (PHEV) as early as next year.The Ministry of Environment said Monday that it has been taking steps to provide a maximum of 6 million won in subsidies for PHEV buyers in order to boost demand for the environmentally friendly, but expensive vehicle.A PHEV can either run on a battery for short distances or on an internal combustion engine for longer journeys. It has better fuel efficiency, because the range it can travel on its battery is further than that of a hybrid car.According to the ministry’s draft, it will request a total of 30 billion won to give financial support to buyers of 5,000 cars.The ministry has given 1 million won in subsidies to hybrid car buyers, 15 million won for EVs, and 27.5 million won for fuel cell electric vehicles.But PHEV buyers, although the prices of their cars are more expensive than hybrid cars, have not received financial support from the government.Due to the lack of guidelines for subsidies, Hyundai has put off the launch of the Sonata PH

May 11, 2015By Park Jin-hai

Companies

Pet industry enjoying boom

A woman and her dog wait to take part in a dog show in Yangjae-dong, Seoul, in this file photo. / Korea TimesBy Park Jin-haiKim Sun-ha, 27, says she spares no expense when it comes to caring for her two puppies ― a two year old Chihuahua and 14-year old Poodle.“Opening up my purse for them is not an issue, because they are my family members,” she said. “As my Poodle has aged, my family decided to buy another puppy in the hope that the little one will buffer the grievance we will feel when we have to bid farewell to the first one.”She admits that the average expenditure on her pets has dramatically increased over the years.“When I had the first puppy, it was the norm to bring him to a vet to take shots. Now many other things have become the norm including grooming and regular health checkups that cost as much as checkups for a person,” she said.Kim said she spends the most on buying dog treats. There are many varieties to choose from organic and handmade to cavity preventing dog bites.Despite the dwindling domestic economy, the pet industry is

May 10, 2015By Park Jin-hai

Companies

Workers at automakers earn most

By Park Jin-haiEmployees of carmakers were found to have the highest salaries among listed companies, said market research firm Chebul.com on Sunday.It said that workers at local automobile companies earned an average annual salary of 82 million won last year, up 2.4 percent from a year earlier.They have topped the list for three years in a row.Meanwhile, the employees of traditional service industries including the entertainment, retail and travel industries posted the lowest salaries.Employees for the petrochemical industry had the second largest paychecks. Their average annual salary peaked in 2013, reaching 84.5 million, but dropped to 79 million last year.Analysts at brokerage houses and bankers took third and fourth place. Analysts received an average 74 million, up 0.4 percent, while bankers pocketed 73.4 million won, up 0.2 percent.Workers of shipbuilders took next place by earning 73.3 million, followed by the gas industry that paid 71 million won.  However, the annual paycheck for the traditional service industries including education, textile, retail, furniture and en

May 10, 2015By Park Jin-hai

Companies

Mahindra, KB to set up auto financing firm

By Park Jin-haiMahindra Group, the biggest shareholder of Ssangyong Motor, will join with KB Financial Group to establish a joint auto financing firm for customers of the local car firm, according to officials from KB Financial Group.Mahindra Finance and KB Capital will invest 20 billion won in the new financing firm, with Mahindra accounting for a 51 percent stake and KB the remainder.The auto financing entity will begin services for domestic Ssangyong customers, but later plans to target the Southeast Asian market.Mahindra expects there to be synergy between the two entities because the Indian firm sells its cars in this market.Mahindra Group bought a 70 percent stake in Ssangyong Motor in 2011, investing 525.5 billion won.Since then, Ssangyong’s sales have significantly increased. Its sales have more than doubled in Korea over the past four years to nearly 70,000 last year from 32,459 in 2010.Ssangyong’s popular compact SUV Tivoli also has been increasing the company’s sales.However, the lack of its own auto financing firm has been regarded as a major weakness. &

May 7, 2015By Park Jin-hai

Companies

Hyundai Motor offers aggressive incentives

By Park Jin-haiHyundai Motor, struggling with a dwindling domestic market share against imported automakers, has come up with aggressive incentive programs to lure customers.The company will offer a 36-month installment program carrying no interest for its three popular models ― Avante, the new LF Sonata and Sonata Hybrid.The limited offer for May enables customers to pay 20 percent of the price and the rest in installments over 36 months. If customers pay in a lump sum, they are entitled to a 500,000 won discount.This is the first time in 18 years that Hyundai Motor has launched a no-interest installment program.It means the company will shoulder a greater financial burden to boost sagging domestic sales.Hyundai Motor also increased incentives for upper-tier models like the Grandeur sedan and Santa Fe SUV.  On top of that, if an import vehicle driver trades in his or her car for one of Hyundai’s luxury sedans, the Genesis or Aslan, this month, the customer will receive a 500,000 won cash payment.Hyundai has offered a variety of favorable financing programs in recent

May 7, 2015By Park Jin-hai

Companies

GM Korea to unveil EV Volt next year

General Motors’ second-generation Volt, an extended range electric vehicle, will be launched here next year. The Volt can run up to 676 kilometers combined with a single charge and full gas tank. / YonhapCEO Rocha denies report of plant relocation to IndiaBy Park Jin-haiGM Korea said Monday that it will launch the next generation Chevrolet Volt here in 2016.The car is an extended range electric vehicle that can go up to 80 kilometers using its battery and up to 676 kilometers combined with a single charge and gasoline fill up.      GM made the announcement at the Electric Vehicle Symposium and Exhibition (EVS28) at the KINTEX, Ilsan, Gyeonggi Province.The international symposium under the theme of “e-Motional Technology for Humans,” kicked off Monday at the exhibition center. Scholars and major carmakers will discuss ways to expand the sustainability of electric vehicles until Wednesday.  GM Korea chief executive Sergio Rocha said, "Our goal is not just to keep up the (electric car) trend, but to lead it and that's why I am very pleased

May 4, 2015By Park Jin-hai

Companies

Audi A3 Sportback e-tron, versatile eco-friendly car

Audi A3 Sportback e-tron, a Plug-in Hybrid Electric Vehicle/ Courtesy of Audi KoreaBy Park Jin-haiAudi held a test-drive event for Audi A3 Sportback e-tron, Audi’s first mass produced Plug-in Hybrid Electric Vehicle on Jeju Island, Thursday, ahead of its official launch scheduled for the second half of this year.Based on the five-door hatchback, the A3 Sportback e-tron is the most efficient and versatile version of the Audi A3.“For customers who want environment-friendly cars but not ready to accept EVs because of their relatively lower driving performance and long charging times, the Audi A3 Sportback e-tron will be a great choice,” said a company official during the event.Drivers can choose four EV modes ― EV, Hybrid Auto, Hybrid Hold and Hybrid Charge mode ― that can run either completely on battery or gasoline, or on a combination of both depending on their need.When driving short distances during weekdays, they can choose the EV mode and the vehicle won’t use any gasoline at all. Yet, the vehicle can run on gasoline for long distance travels on

May 3, 2015By Park Jin-hai

Park Jin-hai

Read more

Hyundai union wants to influence production amount

Hyundai Vice Chair flies to Russia

POSCO Energy mulls over setting up investment firm

PHEV buyers to get subsidies next year

Pet industry enjoying boom

Workers at automakers earn most

Mahindra, KB to set up auto financing firm

Hyundai Motor offers aggressive incentives

GM Korea to unveil EV Volt next year

Audi A3 Sportback e-tron, versatile eco-friendly car

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