Strikes cost Hyundai 2,000 vehicles

Strikes last week cost Hyundai Motor Co. an estimated 30 billion won ($28 million at recent exchange rates) and 2,000 vehicles.

Affiliate Kia Motors Corp. lost an estimated $11 million and 900 units.

Separate unions at the automakers took part in strikes against the South Korean government's deal to resume imports of American beef.

More strikes appear to be planned. Union workers at Hyundai plan to stop work for another four hours on both the day and night shifts on Thursday over a wage deal, the union said on Monday.

The strikes have been organized by a larger group called the Korean Confederation of Trade Unions. Hyundai and Kia unions are members.

The union at Hyundai struck for two shifts Wednesday, July 2, and Thursday, July 3, for a total of six hours, including overtime. The union at Kia struck for a total of four hours.

Unions at GM Daewoo Auto & Technology Co. and Ssangyong Motor Co. did not strike, and no more beef-related strikes have been announced.

But larger strikes could be on the way as all four companies have ongoing contract negotiations with unions. The talks are expected to continue well into July and perhaps into August.

Korean unions, especially the one at Hyundai, typically strike every year during contract negotiations. Last year, the union at Hyundai finished negotiations without striking. But the union joined the more aggressive Korean Federation after last year's talks. While there have been signs rank-and-file members want a more moderate stance from their union, the influence of the powerful Korean Federation could prove to be stronger on union leaders

Fiat, BMW plan small-car alliance

Fiat and BMW will cooperate to develop a new platform for small cars, supplier sources said.

The platform will underpin the next Fiat Grande Punto and BMW's third-generation Mini. Both cars are due early in the next decade.

The two companies are also considering developing a new family of gasoline and diesel engines, sources told Automotive News Europe.

Fiat Group CEO Sergio Marchionne said today that the carmaker will announce a cooperation agreement with another automaker tomorrow.

"Most likely it will be in the car business," Marchionne said on the sidelines of the press introduction of the 500 Abarth model here.

Marchionne did not give any more details on the cooperation.

But supplier sources familiar with the matter told ANE that Fiat and BMW will cooperate on a new small-car platform.

Fiat already has industrial alliances with other carmakers including PSA/Peugeot-Citroen, Suzuki and Tata.

BMW cooperates in Europe with PSA on engine production and the company has a joint venture in China with Brilliance.

Automakers increasingly are cooperating with competitors to reduce investments costs for new models.

China's Chery could bid for Volvo

China's Chery auto group is considering a bid to buy Swedish-based Volvo from Ford Motor, state media said today.

The Caijing business magazine quoted sources as saying that Chery has not yet reached any agreement or applied for permission from the government of Anhui, the company's home province.

It said Jin Yibo, an assistant to Chery's chief executive, had ruled out the possibility of buying Volvo, but other sources told the magazine that Chery had already contacted banks and private equity firms about financial backing for a possible acquisition.

Industry insiders estimated that Volvo could cost Chery more than 30 billion yuan (4.4 billion dollars), it said.

Chery produces several lines of passenger cars, mostly cheap compact models, and plans a share offer in Shanghai next year, Caijing said.

Earlier rumors reported in state media had linked the Shanghai Automotive Industry Corporation to a possible takeover of Volvo.