GM’s Korea retrenGM is Closing Factories in Korea
GM has officially pulled the trigger on some restructuring they had planned in Korea. Ceasing production at a powertrain factory, and three days later shutting down their Gunsan assembly plant.
While closing the powertrain plant is expected to have little impact, it still employed around 100 people, and produced engines for the Chevy Captiva. The Gunsan assembly plant on the other hand, employees nearly 2,000 people, and is expected to cost the company some big bucks. Estimates of $850 million are the price they will have to pay for this closure. Top ranking GM officials have stated that this change was needed because the facility was being underutilized. Workers at the Gunsan assembly plant have facilitated a protest, and the labor union did make a warning of a strike if GM did not provide a plan to turn this whole deal around. GM has stated that it has a plan in the works to fix everything. With numbers down over twenty percent from the previous year it’s hard to see how GM will turn this around.
Overall, GM is slowly slipping in Korea. Plans to change things involve closing down major factories and causing major unemployment. Can GM turn things around and ensure that workers will keep their jobs? That we will all have to wait and see.chment gets an early start