Automotive Industry Makes Plans to Move Operations if Conflict Intensifies in Korea

Automotive Industry Makes Plans to Move Operations if Conflict Intensifies in Korea

Image via Flickr by mrkumm

As the world braces for more conflict in the Korean peninsula, auto manufacturers and parts suppliers make plans to pull their production efforts out of the area in the event war breaks out. North Korea has moved two of its mid-range missiles from their military bases, and have announced plans to go ahead with a fourth nuclear missile test despite worldwide protest.

General Motors in particular is faced with the possibility of shifting its auto production elsewhere from its plant in South Korea. According to the Original Equipment Suppliers Association, based in Troy, if the automotive giant moves it operations out of the area, parts suppliers who work in conjunction with GM will be forced to follow.

Despite growing tensions in the region, the U.S. deployment of missile defense systems to Guam and South Korea’s launching of its own warships in anticipation of an attack on North Korean missile sites, the tourist industry in South Korea continues to boom. North Korea has already warned all foreigners to leave South Korea in light of the threats and increased tension.

Japan, another auto manufacturing powerhouse and manufacturing giant in the region, is also bracing for war to break out in Korea. Japan has boosted missile defenses protecting the city of Tokyo and has issued warnings for travelers to head further south to escape the conflict.

With so many manufacturing facilities in the Pacific region, including auto makers, electronics producers, and other industries there which supply the entire world with goods, the prospect of war is frightening on an economic level as well as on a personal level. Switzerland has offered to mediate between North Korea and other countries involved in the rising conflict, but as of yet no solution nor compromise even looks close.

Some reports claim the threat from North Korea could potentially cause real danger and damage as far east as the western coast of the United States.

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