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

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Joel Stocksdale
Joel Stocksdale has more than a quarter century joined car industry and car news coverage encounter that he conveys to Green Auto Shop perusers. Over the thirteen years that he possessed a car business, he worked straightforwardly with each significant auto mark in the vehicle business and got comfortable with all makes and models of autos. His energy for autos drove him to put over the most recent twelve years in car news coverage where he conveys all that experience to his perusers as he expounds on the vehicle business and the most recent test autos he drives.