Hyundai Strike Ends - the costliest work stoppage ever

[XDCX]

News reports indicate that Hyundai has reached an agreement with their union workers in South Korea which will end the costliest strike in the company's history. The most recent offer was approved by 53% of Hyundai's 45,000 workers. Here's a link to a report with more details - click here (http://www.businessweek.com/news/2012-09-03/hyundai-motor-union-agree-to-end-carmaker-s-costliest-strike)

While the loss of production was worse than initially expected, analysts believe that Hyundai will be able to make up for the lost production in the fourth quarter and still hit their annual sales targets.

To their credit, Hyundai has done an admirable job of diversifying their production beyond South Korea. Here's an excerpt from a Bloomberg News Report:
South Korean plants accounted for 46 percent of Hyundai Motor’s production capacity in 2011, down from 60 percent in 2008, when the last strikes took place, and 93 percent in 2000.

[XDCX]

A report by Reuters indicates the recently ended strike will cost Hyundai $1.5 Billion and U.S. dealers will likely see further problems associated with low inventories. According to the report Hyundai is down to a 21 day supply in the U.S. - the lowest of any major OEM.

Here's a link to the Reuter's report - click here (http://in.reuters.com/article/2012/09/05/hyundai-expansion-idINL4E8K30MZ20120905)

Imagine what the U.S. market would look like today if the Task Force would have selected Hyundai instead of Fiat to be Chrysler's "savior." If Hyundai had the Ram Truck brand and all of Chrysler's plant capacity they'd be in a very strong position.

[rd3311]

Imagine what the U.S. market would look like today if the Task Force would have selected Hyundai instead of Fiat to be Chrysler's "savior." If Hyundai had the Ram Truck brand and all of Chrysler's plant capacity they'd be in a very strong position.

HMC/HMA did not want the "old" plants and the UAW.

[XDCX]

HMC/HMA did not want the "old" plants and the UAW.

Excellent point and it probably explains why Fiat was selected to "save" Chrysler instead of Hyundai or Nissan. There was no way the Task Force was going to allow Chrysler to be bailed out unless all the UAW jobs were preserved.