Hyundai Motor, GM Korea face union tensions amid US tariff risks

Hyundai Motor and General Motors (GM) Korea are grappling with escalating demands from labor unions for substantial wage increases, compounding challenges posed by auto tariffs from the United States. Unions at both automakers are pressing for significant portions of company profits to be distributed as bonuses, despite mounting business uncertainties stemming from U.S. President Donald Trump's push for a 25 percent tariff on automobile imports. Hyundai Motor’s labor union is demanding that 30 percent of the company’s 2024 net profit be paid as a special bonus to union members — an estimated 4 trillion won ($2.9 billion). However, the likelihood of the automaker accepting the demand appears slim, as the company faces growing external risks from potential tariffs. The U.S. accounted for 54 percent of Hyundai’s total exports last year. On Tuesday, Hyundai Motor reported a 1.7 percent decline in sales for May compared to the same period last year, attributing the drop to weaker consumer spending amid an economic slowdown. Hyundai sold 351,174 vehicles last month, down from 357,099Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times