WSJ: The Most Car for the Least Money?

[Omaha Steve]

http://online.wsj.com/article/SB10001424052748704133804575198213563849350.html?mod=rss_Today%27s_Most_Popular

SNIP: “Of course, all cars are in some sense political, since country of origin and economic policy are inextricable. And here the story turns a bit melancholy. The Sonata's awesome pricing occurs at the whip end of a long chain of factors, including the fact that it's built in a place with low wages, a low standard of living and an indifferent attitude toward workers' rights. Someone really should take up a collection for Montgomery, Ala.”

Please note that is Montgomery, Ala. USA! A right to work state BTW.

[Mr Rabble]

1. Bringing the 3rd world home.

Steve- you are doing important work posting this stuff. Thank you.

Just imagine it: Korean companies are building their cars here because the labor costs are lower than in...Korea.

[stray cat]

4. Now we want the jobs to go to Korea?

[Omaha Steve]

8. The Workers in Korea Are Unionised

http://english.donga.com/srv/service.php3?biid=2010042682558

APRIL 26, 2010 03:32
The global car industry has been shaken up by the world economic crisis and Toyota Motor’s massive recalls. So Hyundai Motor of Korea is said to be a company that "turned crisis into opportunity." In the first quarter this year, Hyundai Motor’s sales revenue grew 40 percent year-on-year to 8.42 trillion won (7.59 billion U.S. dollars), with operating profits skyrocketing 357 percent to 702.7 billion won (633.35 million dollars) over the same period. Ordinary profit jumped 385 percent to 1.34 trillion won (1.21 billion dollars), while quarterly net profit soared 401 percent to 1.13 trillion won (1.02 billion dollars), breaking the company’s quarterly records. Hyundai Motor’s performance is considered nothing short of outstanding among major global automakers.

The carmaker has also sought to reduce the negative influence of its combative union. In December last year, labor and management agreed in collective bargaining on wages and other working conditions. In September last year, Lee Kyung-hoon, who championed moderate and practical reform instead of political struggle, was elected leader of the union. After visiting Detroit last month, Lee wrote in the union’s newspaper, “I was shocked beyond description after seeing the entire city of Detroit ruined by the closure of a General Motors plant. With no jobs available, the city’s population diminished and its buildings went into ruins. Korea’s automotive city of Ulsan must learn a lesson from such a hollowing out.”

Hyundai Motor’s unionized workers rejected a proposed general strike planned by their umbrella union, the Korean Metal Workers’ Union. In last week’s voting, an estimated 38 percent of union members voted in favor of a walkout, the first time for the approval rate to fall below 40 percent since the union’s inception in 1987.

The Hyundai union has a dishonorable record of going on strike every year since its founding, except in 1994 and 2008. The union went on strike 11 times in 2006 alone. The number of strike days was 362 days, resulting in production losses of more than 11 trillion won (9.91 billion dollars). Amid fierce global competition, a combative union will make it impossible for the company to remain competitive or ensure job security and welfare for its employees. So the members of the Hyundai Motor union have fortunately opened their eyes and started to distance themselves from militant labor struggle. Once out of the shackles of labor-management relations, Hyundai Motor could achieve what Samsung Electronics has achieved in the global electronics industry.

Editorial Writer Kwon Sun-hwal ([e-mail])

[Jkid]

11. South Koreans have a great protest culture.

Especially when you talking about Korean Unions. Google "Korean union riot"

[Mr Rabble]

9. No. Is someone suggesting that?

Dont you find it uncomfortable that Korean workers command a higher wage than US workers? Shouldnt the richest country in the world have the highest labor costs?

[fishwax]

18. you said it

"Just imagine it: Korean companies are building their cars here because the labor costs are lower than in...Korea."

:argh:

[Liberal_in_LA]

2. wow

[redstateblues]

3. Rented one this weekend and

It was a sweet ride. I had rented a Ford Fusion last month and the Sonata was obviously a better built car-hands down. Sorry to say as I really wanted to like the Fusion.

[madrchsod]

5. i think the fusion is built in mexico...

[Codeine]

6. Yep, in Hermosillo.

Same plant where they build the Lincoln MKZ and the Mercury Milan. They used to build the Focus there too, but it's built in MI now.

[femrap]

7. How much are people working on the line

in AL making?

Over the weekend, I heard some guy on TV saying that GM will be paying its workers $14/hour.

What do you know of this?

[DainBramaged]

15. New hires will earn $14 to start, it was part of the agreement

to reduce costs while effectively screwing the UAW. And once again, you can thank Senator Shelby and Corker for fighting tooth and nail to ruin GM while the Toyota plants in their states thrives on government givebacks and pork.

[Omaha Steve]

10. Kick

[Xithras]

12. One of my coworkers just bought a new Sonata.

I shrugged a bit when she first mentioned her new car, because I still had that early 90's picture of Hyundai quality in my head (friend of mine had a 1990 or 1991 Excel, and it was the butt of every reliability joke you can imagine).

A few of us went out to lunch in her car a few weeks ago, and I was genuinely impressed. I'm still not interested in buying one, but it made me rethink my personal views on Hyundai's and realize how out of date they were. It was a very nicely appointed car with plenty of legroom, a smooth and quiet ride, and very good build quality. The price point for the quality of car is amazing.

[snooper2]

13. It's still a fucking Hyundai...

disposable cars....

[Xithras]

16. I used to think the same thing.

There's nothing disposable about the cars they're building nowadays. 20 years ago, when I formed my opinion of them, they ranked right up there with Yugo in build quality and reliability.

Several months ago I explained on these boards why I would never buy another Chrysler product, explaining the absolute lack of quality (squeaky rustbuckets on wheels) that my last two Chryslers demonstrated. My wifes current car, a 9 year old Caravan, is the biggest piece of garbage I've ever owned, and has required a never ending stream of repairs and parts replacements almost since it was new.

I was told by many that my point of view was dated, that Chrysler had cleaned up their act, and that newer Chryslers were high quality and durable vehicles. I was told not to "smear" the brand with my "outdated" notions, because Chrysler today doesn't build the same kind of vehicles they did back then. They're a better company today.

Apparently, the same thinking should be applied to Hyundai.

[snooper2]

17. Well, I would say the quality has gone up...

But they are still disposable cars...Just cheaply made IMHO

Tie rod ends look like straws, same tin sounding body panels...They do look much better "new" and the fit and finish is 1000 times better than 10 years ago, but mechanically still a 100K mile car. I guess do have to give them credit where credit is due but I won't be buying one anytime..... ever :P

I bought a 03' Dodge Dakota Quad Cab with 90K on the clock almost a year ago now. 4.7L V8 is a great engine, and I think Chrysler finally managed to build a good auto transmission. No troubles at all except when it got really damn cold I heard a tapping sound at startup and went oh shit, here we go. Luckily I have a badass $90 an hour mechanic (who better be badass for $90 an hour :) ) and come to find out it was a exhaust leak. Seems Chrysler didn't see a need to put gaskets between the header and engine block and after around 75K they all start leaking. He made a custome paper gasket for it and good as new for under $200.

Our other car an 06' Grand Prix we bought with 5K miles on it has had zero and I mean zero problems. At around 55K now....

[musiclawyer]

14. Loyal Hyundai owner fot 10 years

Santa Fe, 2 of them, and Elantra. Best cars for the money. Hands down. I put a lot of miles on my cars and have never once been stranded or zero problems. And if Hynundais are disposable cars, then what are Toyota or Honda or Nissan? All cars are disposable. I simply choose to pay less for more. Next up, the Genesis Coupe, hopefully burnt orange color, manual tranny, maybe in two years.