The American concern plans in the near future to close the factory division of GM Korea.
We are talking about the company located in the city of Gunsan, in the province of jeollabuk-Do. The plant will be discontinued at the end of may, and the staff, which numbered two thousand men, reduced. The plant was bought by GM in 2002, complete with a bankrupt automobile unit of the Daewoo.
Note that GM only owns 77% of shares in GM Korea, another 6% owned by Chinese company SAIC and of 17.02% from state-owned Korea development Bank, which has veto power on the sale of assets. The latter fact did not allow the American concern to end production early on, though, with 2014 and 2016, GM Korea has “earned” 1.8 billion dollars loss due to the cessation of sales of Chevrolet in Europe, where Korean automobile Assembly.
Currently, the plant in Gunsan produce only the Chevrolet Cruze and Orlando. However, Cruz is harvested in China and USA, and Orlando only here. The Americans say that the download Korean factories in the last three years accounted for only 20% of the planned capacity of 260 thousand cars a year, thereby increasing the cost of the product. The cost of closing factories for General Motors will be approximately $ 850 million (various technical work and compensation for reduction).
In addition, negotiations are underway with the Korean government, after which will be drawn up a detailed restructuring plan division of GM Korea, which includes two car Assembly factories, transmission factory and Assembly plant in Vietnam. In these industries a total of more than 15 thousand people.
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