Seoul, Korea – Less than three months after announcing the closure of one plant in Korea and the possible closure of others, General Motors has released a plan to revitalize its Asian operations and return GM Korea Co. to profitability by 2019.
GM will invest $2.8 billion in two new global vehicle programs, thanks to concessions from workers and the Korean government. GM and the Korea Development Bank (KDB) have agreed on a balance sheet restructuring that will allow GM Korea to reduce its existing debt by approximately $2.8 billion.
“GM is very excited about our future in Korea,” said GM executive vice president and president GM International, Barry Engle. “Together with the KDB, the Korean Government, the labor union, and our supplier partners, we have created all of the building blocks for executing a long-term viability plan that will be good for our people, good for our company and good for Korea.”
Under the plan, GM will:
- Design, engineer, and manufacture a new small SUV for Korea and export markets
- Manufacture a new crossover vehicle for Korea and export markets
- Engineer and manufacture a small, 3-cylinder gasoline engine in Korea for next generation global vehicles
Kaher Kazem, president and CEO of GM Korea, said GM’s record $2.8 billion foreign direct investment will sustain 200,000 Korean jobs directly and indirectly, including at local suppliers.
“GM Korea now has the right fundamentals to grow a successful business in Korea for the long term,” said Kazem. “Our Chevrolet customers, employees, partners, and community will all be part of this bright future. We will convey Chevrolet’s true value to domestic consumers again through the launch of new models and innovative customer care programs, in addition to large-scale customer-focused marketing and sales activities.”