GM Korea to withdraw production and close Gunsan plant.
Auto Business News-February 13, 2018--GM Korea to withdraw production and close Gunsan plant
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Auto Business News - 13 February 2018
GM Korea Company, a subsidiary of General Motors (NYSE: GM), is withdrawing production and closing its Gunsan plant by the end of May 2018.
The Gunsan facility has been increasingly underutilised, operating at around 20 percent of capacity over the past three years, making continued operations unsustainable.
The automaker has proposed to its key stakeholders, including its labour union, the South Korean Government and key GM Korea shareholders, a concrete plan to stay in the country and turn the business around that needs the full support of all parties. The proposal includes product-related investments in South Korea and is to preserve thousands of jobs. As a result of this action, the automaker expects to take charges of up to USD850m, including approximately USD475m of non-cash asset impairments and up to USD375m of primarily employee-related cash expenses. Substantially all of these charges will be recorded by the end of the second quarter of 2018, and will be treated as special and excluded from the company's EBIT-adjusted and EPS-diluted-adjusted results.
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|Publication:||Auto Business News (ABN)|
|Date:||Feb 13, 2018|
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