Hyundai decides to shift production of i20 to Europe

[wildon]

Seoul: The Hyundai Motor India has reportedly decided to shift the production of one of its premium models 'i20' to Europe.

"Hyundai Motor is considering moving production of the i20 to Europe because about 90 per cent of them are being shipped there," company sources said.

The plan follows a strike by a section of permanent workers at Hyundai Motor India in Chennai, the Financial Times reported. However, company sources refused to comment on this.

Employees of Hyundai's factory in Chennai were on a hunger strike. The workers were demanding recognition of the employee union, formed in 2007. They also demanding charter includes, re-instatement of dismissed employees, hiking basic wages and reducing the performance-linked pay component in employee salaries.

"Because of these problems, we cannot keep up with targets and hence some production will shift to one of our facilities in Europe," Rajiv Mitra of Hyundai Motor India was quoted as telling the daily.

This Hyundai vehicle is built on an all-new platform and is designed taking into consideration the European tastes in both style and ride.

The fresh premium, five-door, hatchback model got its design from the Hyundai's European Car Design Centre in Russelsheim, Germany.

Source: sify
So they are officially agreeing that there is not much takers for i20 in India !

[avishar]

Thats strange, i thought i20 was selling well.Have seen quite a few.

[mithun]

Hyundai should first learn to price their products competitively. Although i20 is a luxurious good looking car it's heavily overpriced !

[BaCkSeAtDrIVeR]

A typical pressure tactic by the management on the employees. "cave in or we will stop production".

The demand for reduction of the performance related component in wages, however looks like a demand for "no work only pay".

[ronnyquest]

Koreans have lost their "Heads". They think if they threaten us "The Indians" then we will respond to them immediately. I think the Koreans should be reminded that the Korean Cars have succeeded only in INDIAN market compared to others. Hyundai doesn't have the market presence as it has in India compared to the Global Market. Hyundai needs us, We don't need Hyundai. If the factory employees have issues, there must be an genuine issue. Hyundai never had union in India for quiet some time. But internal resources say the Korean Management of Hyundai have become arrogant and are misbehaving with their employees. Employees in the fear of loosing job and the salary are forced not to react and express their dissatisfaction to the world. Let good sense prevail in their mindset and not take us for granted.

[nickatnite]

Originally Posted by ronnyquest

Koreans have lost their "Heads". They think if they threaten us "The Indians" then we will respond to them immediately. I think the Koreans should be reminded that the Korean Cars have succeeded only in INDIAN market compared to others. Hyundai doesn't have the market presence as it has in India compared to the Global Market. Hyundai needs us, We don't need Hyundai. If the factory employees have issues, there must be an genuine issue. Hyundai never had union in India for quiet some time. But internal resources say the Korean Management of Hyundai have become arrogant and are misbehaving with their employees. Employees in the fear of loosing job and the salary are forced not to react and express their dissatisfaction to the world. Let good sense prevail in their mindset and not take us for granted.

You have a right to make your point, but please do not exaggerate beyond a reasonable level to do so. Hyundai America is the only car company that is doing well, proportionately in relation to sales of the auto majors during the slowdown. Nobody or nothing is indispensable and everything has to be mutually exclusive. A family friend who works in HMIL's shipping division has told me that all is now well and all shifts are working to full capacity. Let's leave it at that, i hope.

http://http://www.theautochannel.com...01/459091.html

[SLK]

Originally Posted by ronnyquest

Hyundai needs us, We don't need Hyundai

Oh! we sure need hyundai!, Maybe you don't need their car! but they have played a great role in developing the indian market.

[BaCkSeAtDrIVeR]

Originally Posted by ronnyquest

Koreans have lost their "Heads". They think if they threaten us "The Indians" then we will respond to them immediately.

Dude, it not about ethinicity. It is about being which side of the economic barrier you are. Any management raises these threats to deal with a recalcitrant workforce.

If the factory employees have issues, there must be an genuine issue.

Is it not better that we keep off taking sides in this sensitive question? According to law, employees have a right to claim that there is an issue, even if there is'nt one.

[sujaylahiri]

That's how you start losing jobs to other countries. Same thing has been happening in North America, although on a much larger scale.

[BaCkSeAtDrIVeR]

Without comment.

The Hindu Business Line : Workers strike at Hyundai, M&M sets off alarm bells

[aerohit]

There is no way they can move to Europe

The cost savings India offers are enormous.

India and Indians are doing favor for foreign companies (that are struggling financially) by offering them lower labor costs. Atleast, that is the pride and mentality we should maintain, if any of us want some respect from rest of the world.

If foreign companies had not outsourced to India, they would have already gone bankrupt - Atleast they should give us some credit for saving them.

[ronnyquest]

Dear All,

Well i appreciate your views on the topic, but my dear friends i am not against koreans and i must admit that with the entry of koreans cars in the market we have got new techonolgies introduced to our markets. but i am against the korean managment style of working and handling things. Well i have been associated with Hyundai indirectly from 96 December 10th when the inaugration was done by chung mong koo and our C.M. i have seen four md's changed from Yang soo kim, Bj lee , ji kim and lheem. The fact is today hyundai is missing with a strong leadership in the man managment side. The initial indian team which had created a sucess story in hyundai is no more there. The koreans are handling the workers in the korean style, which is not the right way.
Guys i know the real story of arrogance these guys have on us. Let us not take advantage of us for being good.
Ronny

[jessie007]

Saw an ad in a UK newspaper (check attachment) and Hyundai are quoting a starting price of £5000 for the i10 and £6000 for the i20. If we do a direct conversion at Rs.75 to a pound we get:
i10: £5000 X 75 = Rs.3,75,000
i20: £6000 X 75 = Rs.4,50,000

Hyundai must still be making a neat sum to sell cars at this low price in the UK. Don't know if they are exporting CBUs or in some other form. So it is unlikely they'll move ALL its export manufacturing to an east-European location. No other country, barring maybe China, can beat the cost advantage that India gives.