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“Under such conditions, we believed that we would be able to secure competitiveness when we outsource mini-vehicle production to the newly created corporation,” Hyundai said in a statement to Reuters. Kim Yong-gu, chief executive of Hyundai Hitech, a Gwangju-based parts supplier for Kia, is hoping the new Hyundai factory will help make up for reduced output at Kia. Kia’s Gwangju plant produced 455,252 vehicles last year, well short of its production capacity of 620,000. “Kia can’t make the car with current labor costs,” Kim said.

In addition to lower wages, the joint venture will break away from the union’s tradition of striking almost every year during annual wage talks, South Korea’s reputation for militant unions and rigid labor practices has long been cited as contributing to high labor costs and a persistent discount for corporate Korea, To make up for lower pay, Gwangju plans to build 1,100 homes as well as temple university owls cufflinks daycare and gym facilities in the factory complex, with the central government’s help, The plan is not without its critics, who question the wisdom of adding another plant at a time when automakers are grappling with excess capacity amid sluggish domestic demand, falling exports to the United States and weak sales in China..

Auto production in South Korea is expected to fall to 3.65 million vehicles this year, just three quarters of total capacity of 4.66 million vehicles, auto unions say. They also argue the project is politically motivated, with Gwangju long a political stronghold of Moon’s liberal government. “We have been agonizing over how to create jobs at a time when low growth and low employment have become structural issues,” Jung Tae-ho, the presidential job secretary, said at a recent briefing.

WASHINGTON/CHICAGO (Reuters) - U.S, President Donald Trump on Monday urged Boeing Co to “rebrand” its 737 MAX jetliner following two fatal crashes, but the planemaker said it was focused on fixing the problem and brainstorming over next steps to win back public trust, Airline officials said they have held lengthy meetings with Boeing over the past weeks about how temple university owls cufflinks to regain the public’s support once the grounded planes are returned to service, A full rebranding of the MAX was not likely, according to a person familiar with Boeing’s thinking, who noted that renaming an aircraft is a significant undertaking..

Asked about Trump’s advice, delivered in a Twitter post, a Boeing spokesman said rebuilding public trust was their focus, with pilots playing a pivotal role. “Pilots’ confidence in the aircraft will lead passengers and crew to have greater confidence in the aircraft,” Gordon Johndroe, vice president for communications, told Reuters. For now Boeing is concentrating on submitting a software update and finalizing pilot training for regulatory approval. Regulators worldwide are preparing to review Boeing’s proposals.

Trump, who owned the Trump Shuttle airline from 1989 to 1992 and is an aviation enthusiast, weighed in with his thoughts early on Monday, “What do I know about branding, maybe nothing (but I did become President!), but if I were Boeing, I would FIX the Boeing 737 MAX, add some additional great features, temple university owls cufflinks & REBRAND the plane with a new name, No product has suffered like this one, But again, what the hell do I know?” he tweeted, The 737 MAX is Chicago-based Boeing’s fastest-selling jet and its main source of profits and cash, having won some 5,000 orders or around seven years of production for the aircraft..

Chief Executive Dennis Muilenburg has apologized on behalf of the planemaker for the 346 lives lost in accidents in October and March, and promised to eliminate the risk that flight software meant to prevent the plane stalling could be activated by wrong data. “Passengers will be thinking about the pilot that’s flying the plane. We are the real final call,” said Dennis Tajer, spokesman for the U.S. Allied Pilots Association. Trump’s tweet marks the first time the MAX brand underpinning Boeing profits in coming years has publicly been thrown into question by a senior government official.

How Boeing recovers from this blow to the fuel-efficient, single-aisle MAX will be key to its duopoly with European planemaker Airbus SE, since Boeing is years away from being able to deliver a new narrowbody model, experts said, The plane’s grounding has also threatened the U.S, summer travel season, with some airlines removing the 737 from their schedules through August, Brand Finance, a UK-based consultancy that tracks the value of global brands, said on Monday it sees a $12 billion dent to the value of temple university owls cufflinks the Boeing brand, which it had called the most valuable in the aerospace industry worth $32 billion in 2018..

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