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GM’s Proposed $2.8B Investment Could Head Off Showdown or Shutdown in South Korea

Automaker looking at two new models; but union warning of strike.

by on Feb.21, 2018

GM is looking to shut down its underutilized Gunsan plant in South Korea.

General Motors is offering to add two new models to its South Korean line-up as part of a $2.8-billion, 10-year investment plan that could forestall a clash with the government and its union workers.

A week ago, GM announced plans to close its underutilized Gunsan plant, one of four assembly lines in Korea, and it strongly hinted that it was considering pulling out of the country entirely if it couldn’t reverse deep, ongoing losses.

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In return, the Detroit automaker is seeking financial assistance from the South Korean government and is expected to also seek some aid from its traditionally militant unions. But, in turn, workers are warning that if GM doesn’t move quickly to assure a future for those plants they could strike. (more…)