GM says Korea labor costs have surged, but has no plans to exit

April 2, 2015 6:22 AM

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GM says Korea labor costs have surged, but has no plans to exit

ILSAN, South Korea (Reuters) - General Motors Co (GM) (GM.N) on Thursday said its labor costs have risen nearly 50 percent over the past five years in South Korea, where it makes nearly one-fifth of its global output, but that it does not plan to shut any of its four plants there.

GM earlier this year said it plans to end production in Indonesia and cut operations in Thailand as part of broader restructuring. That fueled analyst expectations about reduction in South Korea, where the U.S. automaker has flagged surging labor costs and unstable industrial relations.

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