Author: Tronserve admin
Wednesday 4th August 2021 02:56 PM
Troubled Carmakers under Foreign Owners Make Up a Mere 15% in Korean Market
Korean car producers under foreign ownership that once were responsible for one fourth of cars on Korean roads have become marginal, shunned by domestic drivers as well as losing confidence from their foreign parents due to low productivity and never-ending labor strife.
The three automakers – GM Korea, Ssangyong Motor, Renault Samsung Motors – claimed a combined 15 percent market share at home as of the end of November, according to the Korea Automobile Manufacturers Association and the Korea Automobile Importers & Distributors Association on Thursday. At their heyday, their market share was at 27.4 percent in 2003.
GM Korea, which commanded a 16.9 percent share after selling over 240,000 units in 2000, sold just 67,000 cars this year, down 18 percent from the previous year.
Renault Samsung Motors, whose annual sales reached over 150,000 units with a 10 percent share in 2010 alone, also saw its sales volume and market share nearly halved from a year earlier.
Ssangyong Motor is expected to achieve the 100,000 unit sales milestone this year, but its market share has remained stagnant at 6 percent.
Their outlook is equally murky.
GM Korea, whose Gunsan plant shuttered last year, hopes to boost sales with all-new Chevy Trailblazer SUV next year. It also is undergoing upscaling at its Changwon plant to ramp up the crossover SUV output.
The ramp-up and new release plans may not save the producer as the management and labor remained locked in dispute over wage policy and others, according to experts. GM Korea’s remaining three factories have been producing just half of their capacity due to reduced orders from the softening global car demand and protracted disputes between the management and union.
Output from Renault Samsung has more than halved, with daily turnout at around 220 units compared with the usual 600 units, as workers went on a partial strike for the second time in the year due to labor dispute. Its parent has yet to assign a new model after it canceled Nissan Rogue that took up half of the output from the Busan-based carmaker.