Trabajo economía de 1° (2015)

Trabajo Inglés
Universidad Universidad Autónoma de Barcelona (UAB)
Grado Estudios Asia Oriental - 1º curso
Asignatura introducció a la economia
Año del apunte 2015
Páginas 23
Fecha de subida 12/04/2016
Descargas 4
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Descripción

Este trabajo es un ejemplo y/o guía para que se pueda entender como hacer este trabajo, como se puede ver, las noticias son de 2015, por lo que no os servirá si copiais tal cuál.
El trabajo en inglés cuenta un 0.5 más, y las noticias a elegir deben estar relacionadas con la economía

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20152016 Studies of East Asia: Introduction to Economics (Artur Colom) María Cecilia Martínez Milanés [PROJECT OF NEWSPAPER NEWS OF EAST ASIA] Monitoring and commenting news of September, October, November and December of 2015 Index September-Pages 2 to 5 Zombie Companies on rise in South Korea---------------------------------------4-5 France agrees to cooperate on Creative Economy-----------------------------6-7 October-Pages 6 to 10 Siemens hopes to utilize S. Korea's creative-economy vision--------------8-10 S. Korea economy to grow 3 pct in 2016: think tank-----------------------11-12 November- Pages 11-15 S. Korean shipbuilders to undergo restructuring to cope with market downturn------------------------------------------------------------------------------13-15 S. Korea kicks off population and housing census---------------------------16-17 December- Pages 16-19 LG executive acquitted of vandalizing Samsung washers at German shops--------------------------------------------------------------------------------------------18-19 Mercedes-Benz, Maserati to recall 724 vehicles for defects-------------20-21 ECONOMY BusinessEconomy 'Zombie companies' on rise in S. Korea 2015/09/20 10:35 SEOUL, Sept. 20 (Yonhap) -- A growing number of South Korean companies failed to generate enough operating profit to pay tax and interest payments on their debt, data showed Sunday.
The number of listed companies that logged pre-tax operating loss last year amounted to 541 companies, or 31.1 percent of the total, according to corporate tracker Chaebul.com.
The number of companies that were exempt from corporate tax due to operating loss rose to the highest level in five years, adding 30 firms from 2010, the website said.
Three out of 10 listed companies failed to make sufficient profit to pay down the principal on their debt, it noted.
The rising number of "zombie companies," which refer to firms that do not generate enough operating profit to pay tax and interest payments or require constant bailouts, has been considered a factor that plagues the South Korean economy.
Economic policymakers have announced a series of measures to tackle the zombie menace problem amid growing economic uncertainties, including slowing growth in the Chinese economy and a looming U.S. interest hike.
ejkim@yna.co.kr COMMENTARY This new from the Yonhap News is talking about the big amount of Zombie companies that are appearing in South Korea in the last years. According to the data, showed the day 19 of September in 2015, many South Korean companies have failed to generate enough operating profit to pay tax and interest payments on their debt. This phenome could affect and give a huge impact in South Korean economy, but it is unknown the effects this could bring. Economic policymakers, to resolve this problem, have announced a series of measures to stop this problem, and this measures include slowing growth in the Chinese economy and a looming U.S. interest hike.
What is a ‘zombie’ company? Zombie companies are businesses that, although generating cash, are unable to attract enough investment to start paying off their debts.
After covering running costs, fixed costs (wages, rates, rent) they only have enough funds left to pay off the huge interest on their debts, but not the debt itself. This is why they are called "zombie companies" - they are still trading, and so half living, but not able to invest or grow to pay off their debts, which is why they are also considered half dead. Zombie firms are loss-making and have little hope of improvement in the imminent future. Therefore, they depend on banks to grant them another loan to survive, effectively putting them on never-ending life support.
This new shows us one of the biggest problems that have been there long time ago until these days in the South Korean economy: the existence of zombie companies.
This suppose a big problem to the fact that they don’t generate enough profit to pay tax and interest payment, and what this means? This means a huge negative impact in the economy of the country. But there have been numerous cases like this, for example, research from the Institute for Turnaround, the not-for-profit and leading membership body for turnaround and transformation professionals, estimates that there may be up to 100,000 zombie companies in operation in the UK, and, on the other hand, Japan had the same problem in the 80s and 90s, but they used these companies to make a balance in their economy, so maybe it’s not the worst thing to happen, maybe this can be used to obtain benefits.
This is happening right now in China and South Korea, so we will see how this will affect to them, as a problem or as an opportunity.
S. Korea, France agree to cooperate on creative economy 2015/09/18 03:48 PARIS, Sept. 18 (Yonhap) -- South Korean Prime Minister Hwang Kyo-ahn and his French counterpart, Manuel Valls, have agreed to cooperate to improve the creative economies of the two countries.
The two leaders said Seoul and Paris will come up with specific measures for bilateral cooperation on the creative economy, as well as action plans for cooperation in each sector.
The agreement was reached during their meeting at the Hotel Matignon, the French prime minister's official residence, on Thursday.
The two leaders explained each other's creative economy efforts.
Hwang said South Korea supports innovative business startups as it is seeking to lower the unemployment rate of young adults.
South Korean President Park Geun-hye has been pushing for her flagship policy, dubbed the creative economy, which is based on taking creative ideas and turning them into real businesses utilizing science, technology and information technology, in order to boost the economy and create jobs.
South Korea has set up 17 innovation centers across the country to match up local startups and venture firms with conglomerates, which can provide resources to smaller companies so that they can turn creative ideas into real businesses.
END) COMMENTARY This new from the Yonhap News affirms that both Prime Ministers from South Korea and France (Hwang Kyo-Ahn and Manuel Valls) have settled to cooperate together to improve their creative economies in their countries. The two leaders said Seoul and Paris will come up with specific measures for bilateral cooperation on the creative economy, as well as action plans for cooperation in each sector.
Both leaders explained each other's creative economy efforts.
Hwang said South Korea supports innovative business startups as it is seeking to lower the unemployment rate of young adults.
South Korean President Park Geun-hye has been pushing for her flagship policy, dubbed the creative economy, which is based on taking creative ideas and turning them into real businesses utilizing science, technology and information technology, in order to boost the economy and create jobs.
South Korea has set up 17 innovation centers across the country to match up local startups and venture firms with conglomerates, which can provide resources to smaller companies, so they can turn creative ideas into real businesses.
This new supposes a big change in both countries, mainly because both countries will change their economy and their growth will follow a similar path.
This accord would be because of different factors, maybe the fact that South Korea and France are both of the main countries in the economy sector (South Korea is #4 and France #7 in the rank), or could be that France, trying to follow the closest countries around (Such as Germany or England), this method would be the right strategy to take this goal (Asian countries are the biggest economy potentials globally, for example, Shanghai (China) is the richest city in the world, or Japan, which is one of the most richest countries in the world, competing with New York and London) After all this, this is a chance to show that Asian countries are in a constant competition against North American and European countries, not only in the technologic sector (Japan and South Korea are considered the most advanced countries in new technologies and innovates technologies), and in the commercial sector (China and United States are fighting politically to get the strategies places for it), this new shows that East Asian countries are bigger than we thought, even could be better than these countries if they don’t take a look on them.
France seems that has understood this and has decided to take advantage of this fact, just as South Korea. Both, with the cooperation of each other, can be bigger and better if they play well their cards.
(LEAD) Siemens hopes to utilize S. Korea's creative-economy vision 2015/10/14 08:43 (ATTN: ADDS photo, details in paras 9, 15) By Kang Yoon-seung SEOUL, Oct. 14 (Yonhap) -- German industrial giant Siemens AG said Wednesday it hopes to seek opportunities from South Korea's latest industry strategy and that it is ready to bring digitalization to Asia's fourth-largest economy.
"Technological leadership has driven Korea's and Germany's economic success in the past," Siemens CEO Joe Kaeser said in a forum in Seoul. "Both countries have a highly skilled workforce and powerful R&D ecosystems.
"Korea has world-leading ICT companies and excellent data infrastructures. Germany has a long tradition of cutting-edge manufacturing, a profound understanding of industry-specific processes," Kaeser said, hinting the two countries can find a sense of common ground.
"We at Siemens are committed to be on your side. You can count on us," Kaeser said, highlighting South Korea's creative economy vision to build 10,000 digitalized factories.
Kaeser said Germany's Industrie 4.0 vision also is in line with the creative economy, where "the virtual world of IT merges with the real world of the shop floor." The company said it is currently contacting various local partners for the vision but fell short of providing further details on names and amounts.
Bringing digitalization to local manufacturing is not just for market behemoths like Samsung or Siemens but also for small and mid-sized players, Kaeser added.
Simens said South Korea shows strong potential, especially as it has proven success in the first phase of digitalization in the consumer segment.
"Leading smartphones and digital entertainment devices are made in South Korea," Kaeser said. "There are 1,100 cellphones in the country for every 1,000 people." If successfully adopted, the Siemens head said, digitalization of the manufacturing segment will give industry players three key capabilities -- speed, efficiency and flexibility.
The German businessman also highlighted the importance of security when it comes to digitalization, adding South Korean policymakers must take this factor into consideration.
Concerning German carmaker Volkswagen Group's emission scandal, Kaeser said South Koreans can still count on Siemens, as it has been making efforts to maintain a sense of compliance.
Siemens, which entered the South Korean market in the 1950s, currently employs around 2,100 people here, with revenue standing at 1.63 trillion won (US$1.41 billion) as of 2014.
colin@yna.co.kr (END) COMMENTARY The world-wide famous company Siemens, from German origin, has shown interest in using the South Korean methods of creative-economy vision to rise their own economy to the point of becoming one of the richest countries in the world. The famous company has praised the data infrastructures, security and world ICT companies, even they have recalled the fact that leading smartphones and digital entertainment devices are made in South Korea. In spite of the Volkswagen Group’s scandal, Siemens has offered the offer to help each other in their own financial sector.
To understand better this new we should know what creative economy really means. This definition seems changing to our days, but this term was developed and popularized by John Howkins in 2001. He applied the term to the arts, cultural goods and services, toys and games, and research and development. The most common models of the creative economy share many elements. Howkins’ creativity-based model includes all kinds of creativity, whether expressed in art or innovation. The narrower culture-based models concentrate on arts, design and media and are normally restricted to nominated industries. The term increasingly refers to all economic activity that depends on a person’s individual creativity for its economic value whether the result has a cultural element or not. In this usage, the creative economy occurs wherever individual creativity is the main source of value and the main cause of a transaction.
As we can see, most part of European and American countries are observing the advantages of the Asian economies vision, and are trying to take part of that. Examples of this methods are clearly reflected in companies such as Samsung, which have grown a fortune of 2 billion dollars every year due to their creative and innovative vision of technology and economy. Another company that it’s really into this market, and at the same time, is competing with Samsung to be the best in their own area, is Sony, Japanese company that, also, has innovated in their products and marketing.
At the same time, Occidental countries want to prove their economy and marketing systems to grow their own fortune and to progresses their companies in the global competence.
What conclusion can we take of this? That, nowadays, South Korean economy has captivated the sights of huge companies around the world, not only in its own continent, we are talking from a worldwide vision, and, whenever they want, they can make traits with whoever they want, since China to France.
(LEAD) S. Korea economy to grow 3 pct in 2016: think tank 2015/10/28 06:45 (ATTN: ADD more details in paras 7-10; CORRECTS year in 3rd para) SEOUL, Oct. 28 (Yonhap) -- The South Korean economy is expected to grow 3 percent in 2016 from this year amid a prolonged slump in exports and a delay in the recovery of domestic demand, a major think tank said Wednesday.
The forecast by the Korea Institute of Finance (KIF) is grimmer than the government's prediction of 3.3 percent and the Bank of Korea's 3.2 percent projection. But it is slightly higher than forecasts made by South Korean private economic think tanks.
The KIF also predicted Asia's fourth-largest economy to expand 2.6 percent on-year in 2015, down from a 2.8 percent estimate made four months earlier.
"Sluggish exports are expected to continue to weigh down the economy next year," KIF researcher Lim Jin said. "But the government's measures to boost domestic consumption and positive signs from economic growth in the third quarter kept our projection at the 3 percent level." In the July-September period, the South Korean economic growth stood at 1.2 percent on-quarter, reaching a five-year high, thanks to a strong rebound in domestic demand, central bank data showed.
According to the KIF, exports are forecast to grow a mere 0.4 percent in 2016 from this year as the sluggish recovery in China will offset increasing imports to advanced economies.
Private spending is expected to increase 2.2 percent next year, accelerating from the 1.9 percent on-year gain in 2015, on the back of recovering consumer sentiment and a fall in prices of raw materials and economic growth.
The think tank also forecast facility investment to rise 4.8 percent next year, slowing from this year's 5.2 percent gain, as companies scale back capital spending amid sluggish exports.
The KIF projected South Korea to post a current account surplus of US$95.1 billion next year, slightly lower than this year's estimated $105.2 billion.
The jobless rate is likely to come in at 3.5 percent, lower than this year's estimated 3.7 percent, according to the organization.
graceoh@yna.co.kr (END) COMMENTARY According to a new from the Yonhap News, South Korean economy is expected, according to a studio by the think tank government, to grow a 3 per cent in the next year, in 2016. In the JulySeptember period, the South Korean economic growth stood at 1.2 percent on-quarter, reaching a five-year high, thanks to a strong rebound in domestic demand, and according to the KIF, exports are forecast to grow a mere 0.4 percent in 2016 from this year as the sluggish recovery in China will offset increasing imports to advanced economies.
The think tank also anticipated facility investment to rise 4.8 percent next year, slower than 5.2 percent from this year. The jobless rate will be lower with 3.5 percent, and, also, KIF projected a current surplus of US $ 95.1 billion next year, slightly lower than this year´s.
What it is a ‘think tank’? A think tank or policy institute, research institute, etc. is an organization that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most policy institutes are non-profit organizations, which some countries such as the United States and Canada provide with tax exempt status. Other think tanks are funded by governments, advocacy groups, or businesses, or derive revenue from consulting or research work related to their projects.
We can talk a lot about South Korean economy’s situation. First of all, it seems like its economy it’s growing slowly but constantly, and looks like this growth is thanks to the exportations and a delay in the recovery of domestic demand, according to a major think tank, but, on the other hand, according to the forecast by the Korea Institute of Finance (KIF), is estimated to expand 2.6 percent on-year in 2015, down from a 2.8 percent estimate made four months earlier. While KIF it’s expecting to weigh down the economy next year, government’s measures to boost domestic consumption and positive signs from economic growth in the third quarter kept their projection at the third level.
What we can say about this? That, even the fall of specific sectors or the growth of other sectors, South Korea has proven a thing, has a really big control of the economy situation, to the point that, due to measures and strategical views, they can recover and even increase their economy.
My conclusion would be that, once again, South Korea has shown that it’s one of the best countries in the global market, which can stay in the rank and knows how to recover when problems come.
ECONOMY BusinessEconomy S. Korean shipbuilders to undergo restructuring to cope with market downturn 2015/11/01 09:39 SEOUL, Nov. 1 (Yonhap) -- South Korean shipbuilders are expected to engage in painful restructuring efforts starting this month as they struggle to cope with the present market downturn, industry watchers said Sunday.
The restructuring that will affect Hyundai Heavy Industries Co. (HHI), Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering Co. (DSME), as well as many smaller sized companies, could result in the streamlining of operations, and the laying off of some 10,000 workers in the next two to three years. The latest market crisis can also lead to less competitive yards going bankrupt in the face of dwindling orders.
As of last year, 18.2 percent of local shipyards were classified as "marginal" companies that could collapse. This is up significantly from 6.1 percent in 2009.
Reflecting this, the government has made clear that the market needs to sort itself out with weaker companies being allowed to fail.
In the heyday of shipbuilding, companies made trillions of won and hired large numbers of new people who got hefty paychecks. More recently, with the global economy on the wane and stiffer competition from yards in China, local companies have been losing trillions of won.
Even the world's big three shipyards -- Samsung Heavy, HHI and DSME -- are expected to post losses totaling 10 trillion won this year alone.
"Companies that cannot float on their own need to be ousted, which can help alleviate market uncertainties," said Financial Services Commission Chairman Yim Jong-yong.
"Restructuring can eventually help the national economy." Reflecting this stance, a source in the shipbuilding industry said the government seems determined to oust failing companies and force those that remain to engage in tough restructuring measures.
Highlighting such developments, DSME already agreed to implement changes that can lead to the layoff of upwards of 30 percent of its workforce in 2016. This can translate into 3,000 people being fired.
The company's union caved to pressure from its creditors, led by the state-run Korea Development Bank, last month. DSME, moreover, pledged to sell off all unnecessary assets and property holdings to generate funds.
Besides Daewoo, industry watchers said that HHI and Samsung Heavy that had all engaged in restructuring last year may have to follow through with additional cost cutting measures.
"The three large shipyards have similar earnings structures and compete for the same dwindling orders so their situations should be roughly the same," the source said.
He said there have already been moves by local shipyards to start accepting early retirement on a regular basis as a means to cut costs.
Others said that in the next couple of years, there will likely be a move to merge failing companies into bigger yards that can compete more effectively with overseas rivals.
The government, meanwhile, said that with conditions in the shipbuilding sector unlikely to improve anytime soon, efforts are under way to provide emergency support to certain areas, such as South Gyeongsang Province, that will be the most affected by closures so they can switch to new industries and businesses.
In addition, measures will be drawn to extend the employment support period provided by the state from the current one year to three, so people laid off from work can receive more training, which should make them more eligible for new positions.
yonngong@yna.co.kr (END) COMMENTARY This new written the first day of November of 2015 talks about the market crisis that, in this situation, companies have to reform the structuring of their financial efforts to face the present market downturn.
This restructuring reform will affect big companies such as Hyundai and Samsung, as well as small companies, which means that around 10000 employers will be fired of their jobs in the following two and three years (and this will result the slower competition) This will not only affect employers, also gains will be lost in the following years. The global crisis and the economic competition from China, will take as result the loss of billions of won, not only from small companies, even from the giants industries, not only in South Korean, in the world (is estimated that Samsung will lose 10 trillion of won.
Financial Services Commission Chairman Yim Jong-yong assured that restructuring is necessary and, eventually, restructuring could be helpful to help the national economy.
In first place, we should know what downturn is. An economic downturn suggest the rate of economic growth is slowing down and possibly entering into recession. A downturn is part of the economic cycle (sometimes referred to as trade cycle or business cycle). The key features of an economic downturn include: Negative or very low economic growth , rising unemployment, falling asset prices – shares and house prices, low confidence and falling investment (the accelerator theory suggests that a fall in the rate of economic growth is enough to lead to lower unemployment), etc.… As we can see, economy crisis it’s not only affecting part of the world, like United States or the European Union, we are talking about a global crisis that have crushed the economy around the world, and East Asia it’s not the exception. The countries that are most affected by this crisis are the richest countries in Asia, and part of the richest countries in the world: China, Japan and South Korea, and this new help us to understand the situation in South Korea to face this big problem.
South Korea, even having global companies that are in the top of sales and marketing (Hyundai, Samsung, etc…..), are losing trillions of won and it’s estimated that they will lose more in the following years (between 2016 and 2018). And, to fight against this loss, they are taking hard reforms, until the point that most part of small companies will be closed and big companies will be fight to stay open, even if they have to fire thousands of people to get that goal.
Certainly, it’s unknown what the future will bring us and what will happen, but all of us are fighting for a better future and to have the best for ourselves, so, the conclusion would be that, whatever will happen, they are fighting for their future, and that’s something to bow for, so we will see if they get their goals.
ECONOMY BusinessEconomy S. Korea kicks off population and housing census 2015/11/01 12:00 SEJONG, Nov. 1 (Yonhap) -- South Korea has kicked off a population and housing census for all people living in the country, Statistical Korea said Sunday.
The census, which will involve direct one-on-one interviews with residents, aims to collect vital data that can be used by the country to formulate social policies and better meet the public's present and future needs, the statistical agency said.
The latest survey, which is the first in five years, will be carried out starting Sunday and run to Nov. 15.
Visits will be made to households that have not responded to the online census carried out from Oct. 24 to Saturday. The country first carried out a census in 1925.
It said Korean nationals, as well as foreign citizens living in the country, will be asked to answer various questions posed by the census officials that could take some 30 minutes from start to finish.
It said that people who want to respond to the Internet survey can still do so even if the official deadline has expired. This move can save time and effort and be more convenient for some, although census takers may visit a home if the data provided online is inadequate.
The agency then assured the public that under South Korean law all data collected cannot be divulged to any other outside source, so there won't be any privacy issues. It said questioners have been instructed to clearly show their identification before entering a person's home to ensure there are no safety concerns.
(END) COMMENTARY This new was written the first day of November of 2015. It tell us that South Korea has kicked off a population and housing census for all people living in the country, according to Statistical Korean.
This was made to recollect vital data by one-on-one interviews to make social and policies reforms in the future, so they will consider and take into account, not only Korean citizens, even foreigners that are living in the country at the moment. To make these interviews, there will be total privacy, so there’s no to get worry about, they can answer with total freedom.
What is a housing census? A housing census is the total process of collecting, compiling, evaluating, analyzing and publishing or otherwise disseminating statistical data pertaining, at a specified time, to all living quarters and occupants thereof in a country or in a well-delimited part of a country.
This is a good way to take information from the citizens and take them into account when they change or make laws or norms. And, if people want to do the interview and they can’t because circumstances or any problem, they offer the chance to do the interview online for those who can’t be present in the interview.
So, taking in consideration these data and information, they will reforms knowing and thinking in the citizen’s opinion, of any gender, age, and even ethnicity. This will affect not only social and policies reform, also it will affect economies and politics changes due to this housing census.
ECONOMY BusinessEconomy (LEAD) LG executive acquitted of vandalizing Samsung washers at German shops 2015/12/11 16:24 (ATTN: CLARIFIES para 7) SEOUL, Dec. 11 (Yonhap) -- A local court on Friday acquitted the president of LG's home appliance division on charges of wrecking washers of rival company Samsung Electronics Co. at German shops, citing a lack of evidence.
The Seoul Central District Court found Jo Seong-jin not guilty of vandalizing three Samsung washers at two shops in Berlin in September 2014.
Samsung has claimed that LG staff members were spotted breaking the doors of Samsung's washing machines at the shops and were reported to the local police by shop clerks.
The alleged incident occurred just ahead of the Internationale Funkausstellung (IFA) trade show where the two South Korean tech giants competed for the spotlight in consumer electronics.
The court, however, said the prosecution did not prove that president Jo actually broke the washers and that he had intended to do so.
The 59-year-old was also cleared of charges on obstruction of duty, which had been added when the LG Electronics Inc. claimed in a press release after the incident turned public that certain parts of Samsung's washers are vulnerable.
The court said the press release contained an expression of opinion, not a statement of fact, thus distributing it cannot be deemed as spreading false information.
(END) COMMENTARY It seems that 2015 it has been a year of several scandals starring by big companies, one of the biggest examples of this is the Volkswagen scandal, but, of course, in Asia wouldn’t be less that would be involved in this scandals. It’s not a secret that LG and Samsung are big companies worldwide, and competition is a law in this sector. Both are companies dedicated to electronic innovations, LG are more into domestic machines and, even the most popular products of Samsung are mobile phones and tablets, domestic machines aren’t the exception.
So, nowadays, the world where we are living is facing a painful economic crisis that only the strongest survives, so it’s no impossible to think that this kind of news appears.
Apparently, LG was accused of sending their own members staff to wreck washing machines from their competitor, Samsung, in German shops. This happened last year and were still in judgment until the 11th of December of 2015, that claimed Jo Seong-Jin (president of LG's home appliance division) innocent of all the charges because of the lack of proofs, and he was also cleared of charges on obstruction of duty (he claimed in a press that specific parts of Samsung’s washers were vulnerable) ¿What we can say about this? The court has decided that Jo weren’t guilty of the charges, but it doesn’t mean that it is the truth. In the case it really happened, maybe was a desperate act of attacking Samsung violently, or maybe was a warning for Samsung, to know that they have a competitor and LG will do anything to win this battle between companies.
In this economy crisis that we are having in the last years (but in Asia the effects of economy crisis and downturn are showing recently because of the crash of Chinese economy) the survival it’s the first and most important goal, and to get that objective it’s necessary to confront the less numbers of competitors as possible, and if they are strong and big opponents, the more to get worried.
Who knows what it is, but we can say that the tension between this two titans is bigger than ever and looks that it won’t go away for a long time.
ECONOMY BusinessEconomy Mercedes-Benz, Maserati to recall 724 vehicles for defects 2015/12/07 11:00 SEJONG, Dec. 7 (Yonhap) -- Mercedes-Benz and Maserati will recall 724 cars sold in South Korea for safety-related mechanical defects, the Ministry of Land, Infrastructure and Transport said Monday.
German luxury carmaker Mercedes-Benz will make repairs on 721 S63 AMG 4Matic sedans for ignition problems. The defect has been determined to be caused by a program glitch in the electronic control unit (ECU) that sometimes keeps fuel from flowing to the engine when the vehicle slows down.
The drop in fuel can cause the ignition to turn off, which can cause safety problems, according to the ministry.
ECU is a key computer system that collects data from various sensors located on the car and controls how the car operates.
The ministry said cars made between May 13, 2013, and Nov. 21 of this year will be recalled starting Monday with repairs being made free of charge.
Related to the recall, the ministry had ordered the Korea Transportation Safety Authority to check the cause of the problem after the vehicle caused a public fervor when a frustrated driver publicly smashed his 200 million-won (US$171,600) S63 with a baseball bat and a golf club in Gwangju, a city about 330 kilometers south of Seoul, in September.
In addition to Mercedes-Benz, the ministry said two GranTurismos and one GranCabrio made by Italian carmaker Maserati will be recalled for problems in their door lock mechanisms.
According to the carmaker, the side door of the two vehicles can inadvertently open in the case of a crash. The defect only affects cars made on Sept. 11.
Forza Motors Korea Corp., which is the importer and dealer of Maserati and Ferrari cars, will offer repairs from Friday onward.
yonngong@yna.co.kr (END) COMMENTARY Mercedes Benz is one of the most famous car companies in the world, known because of their quality and design when they construct their cars. As same as Maserati, well known of their luxury cars, it’s a filial of Fiat, like Ferrari. Both are companies famous worldwide, to the point that they sell big part of their products in Asia.
But lately, last month recall 724 cars sold in South Korea for safety-related mechanical defects, according to the Ministry of Land, Infrastructure and Transport. The defect is caused by a program glitch in the electronic control unit (ECU) that sometimes keeps fuel from flowing to the engine when the vehicle slows down.
This defect can cause safety problems, which is a really big fail of construction.
This is a really big fail coming from two car companies that big, which will affect their sales and they will have to work hard to compensate the loss. This not will only affect this companies, will also affect Korean citizens, not only for the main safety problem, because they, maybe, will not trust products from Mercedes or Maserati again, so they will have to buy cars from another companies, such as Samsung, which is a national company.
This kind of fails can cost billions of money and even the trust of their consumers.
There’s no doubt that this is a big fall for both, but, as big companies that have demonstrated to be, surely they will find the way to rise again, it’s a matter of time.
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