General Motors Co’s South Korean unit GM Korea Co’s vehicle sales in November declined by 45.6pc to 21,384 units as compared to 39,317 units in the preceding year as unionized workers’ strikes at its plants led to production losses, according to media reports citing the company’s statement.
The company’s domestic sales in November stood at 6,556 units, down by 105.pc from the prior year, while exports plunged by 53.7pc to 14,828 units as compared to the same month last year.
The employees of the company demanded an end to the wage freeze and walked out several times in November that led to disruptions in production. That, coupled with the COVID-19-induced lockdown and curbs reduced the production and sales in the first 11 months (Jan-Nov, 2020) of the year.
The company suffered losses of 60,000 units in H1 FY20 due to the economic impact of the pandemic and losses of 25,000 units due to partial strikes by workers.
In the Jan-Nov period, the company sold 321,736 units, down by 15pc from the prior-year period.
GM Korea’s domestic vehicle sales in the 11-month period rose by 8.9pc to 73,695 units due to a boost given by robust sales of Chevrolet Spark minicars, while exports, on the other hand, decreased by 20.2pc to 248,041 units as compared to the prior-year period.
The company could suffer a further decline in output as the striking workers have voted against the tentative wage deal.
The carmaker has two factories in South Korea’s Bupyeong and one in Changwon. The company’s total South Korean vehicle manufacturing capacity is 630,000 units per annum.