By Oh Young-jin
GM Korea, formerly GM Daewoo Auto and Technology, is undergoing a significant change under the leadership of CEO Mike Arcamone.
Arcamone is currently involved with the global debut of the Malibu, a mid-sized sedan, in Korea.
The Malibu’s debut brings reality to what has often been regarded as lip service by the multinational GM that it takes the Korean market very seriously.
GM isn’t stopping there, as Arcamone is telling the Korean media that the Malibu will compete with the best products Korean carmakers put out ― the K series of Kia Motors and the Grandeur HG, the latest model of the classy sedan by Hyundai Motor. Hyundai and Kia are sister firms belonging to Hyundai Motor Group.
Arcamone appears to be driven, believing that the Malibu will deliver what he has promised ― beating Renault Samsung, a Renault subsidiary, to regain the No. 3 position in the Korean automaker pecking order, and raise its market share to over 10 percent.
So far, GM Korea has been progressing according to plan but needs a last-minute boost from the new sedan to attain its dual goals for this year.
Its CEO clearly sets out these but apparently knows the most indispensable tool to attaining them are his employees.
According to GM Korea officials, the firm has conducted mass promotions affecting 1,347, about 21 percent of its total white-collar workforce.
Of course, it is open to debate whether it is prudent to promote such a large number of employees, which burdens the carmaker’s bottom line at a time when the global economy is in the middle of a crisis.
The promotions came on the back of a two-fold increase in its pay roll to 16,240 from its 2002 start.
Arcamone was quoted in a GM news release that he was happy for those who were promoted, part of the firm’s effort to share growth with those who work for it.
Again, GM’s efforts, being translated into reality by Arcamone, appear to be more can be explained by numbers alone. The latest promotions are the biggest in the company’s history with women accounting for 14 percent. The ratio of woman employees has doubled since the company was launched as GM Daewoo Auto and Technology after GM took over the bankrupt Daewoo Motor.
What is hidden from plain view about the power of GM Korea and GM by extension is its experience in diversification and its willingness to continue it. A number of employees hired in Korea are sent overseas, taking advantage of GM’s vast production and sales network.
When one PR employee, who was just promoted, was asked about why she liked the company, she responded that it gave her the opportunity to become a `global person’ and grow to be one with the elaborate programs inside GM. If, with a dose of hyperbole, her colleagues who were also promoted feel the same way, Arcamone’s decision to go for mass promotions may be worth the extra spending by the firm because they can give him something that money can’t buy ― loyalty. It is well known that loyalty can go a long way in making a success out of a business.