Hyundai Meets With South Korean Workers Union Leaders To Avert Plant Strike
News: South Korean automaker Hyundai has resumed negotiations with the carmaker's workers union in order to stop an upcoming strike, Global Post reports. Following 70% of the union's members voting in favour of a strike at Hyundai's assembly plants, company President Yoon Gap-han met with union leader Moon Yong-moon and other union officials in Ulsan requesting a quick resolution. The union is asking for a US$117 wage increase and an extension of the retirement age to 61, among other things. Previously Hyundai refused to meet the demands.
BMI View: According to the Korea Automobile Manufacturers Association (KAMA), domestic vehicle sales for the first four months of 2013 came in at 443,203 units, down 1.5% year-on-year). While this plays out our bearish outlook nicely, we are slightly upgrading our forecast to take into account strong commercial vehicle (CV) sales in the first few months of the year. We are revising our vehicle sales forecast for this year slightly upwards to -1.2%, to 1.39mn units, from -1.9% previously.