SEOUL: James Kim, CEO of Microsoft Korea, will move to GM Korea on June 15 to work as chief operating officer (COO) for the struggling automaker, the company said Wednesday.
Kim will be responsible for overseeing the operations of the local unit of U.S. automotive giant General Motors (GM), including production, quality control, sourcing and labor relations. He will report to GM Korea CEO and Chairman Sergio Rocha, whose three-year term ended in February. But the Brazil-born CEO asked the U.S. headquarters to let him stay longer.
Kim, who is also chairman of the American Chamber of Commerce in Korea (AMCHAM Korea), has been leading Microsoft Korea since 2009. Previously, he served as CEO of Yahoo Korea. He has a bachelor’s degree in economics from the University of California at Los Angeles and a master of business administration from Harvard University.
“Kim has an outstanding track record as a leader in technology, consulting, manufacturing and telecommunications companies in Korea and the United States,” said Rocha. “He will focus on the operational areas of the GM Korea business at a critical time when we are implementing new product programs and driving towards greater competitiveness and sustainability.”
Kim’s appointment comes as the carmaker faces difficulties in wage and collective bargaining negotiations with the labor union. The union wants the company to increase workers’ base salary by 159,900 won ($145) and pay a one-time bonus worth five times workers’ base salaries.
Unlike Hyundai Motor and Kia Motors, GM did not face a strike in 2014 after raising salaries and paying a hefty bonus. But the company is largely expected to have a tougher time this year reaching a consensus with unionized workers.
In 2014, the automaker saw its revenue drop 2.68 trillion won to 12.92 trillion won from 2013. It also incurred a 148.6 billion won operating loss, compared with a 1.1 trillion won operating profit in 2013. In the first quarter of 2015, it sold 198,017 vehicles at home and abroad, down 11 percent from a year earlier.
The carmaker has also been dealing with a flurry of media reports that its headquarters in Detroit could downsize its operations and shift production from Korea.
