Car Output in S. Korea Fell 2% in 2018

February 11, 2019 at 2:27 AM

Production of passenger vehicles in South Korea slipped 2% to 4.02 million units last year, marking the third straight year of decline, according to the Korea Automobile Manufacturers Assn.

Domestic output reached 4.55 million cars in 2015, then slid to 4.22 million in 2016 and 4.11 million in 2017. KAMA blames the decline in part on chronic strife between labor unions and carmakers.

The Korea Herald says observers expect the country’s output to drop below 4 million vehicles this year, mainly because of cooling global demand for new cars.

The trade group urges the Korean government to aid domestic vehicle production competitiveness by adopting unspecified policies that foster cooperative ties between labor and companies. KAMA also suggests revisions to the country’s fuel efficiency and exhaust emission rules.