GM is making an aggressive push to save its South Korean business - but the clock is ticking

Posted On: Feb 13, 2018   |   Posted By: Business Insider

GM is making an aggressive push to save its South Korean business - but the clock is ticking

GM is taking urgent steps to fix its ailing South Korean business.
The carmaker isn't yet ready to exit the market or sell GM Korea, as it did with Opel in Europe in 2017.
The first step toward rightsizing the operation is the closure of an underutilized factory.
General Motors is moving quickly to fix its business in South Korea.
After CEO Mary Barra highlighted problems with GM Korea on the carmaker's fourth-quarter earnings call, the company announced on Monday that it would shutter its plant in Gunsan by May, citing capacity utilization of just 20% for the past three years.
GM expects the closure to account for an $850-million special charge that it will report at the end of the second quarter. (Gunsan builds just two vehicles, the Cruze compact sedan and the Orlando, a compact hatchback.)
Given Barra's bold moves to streamline GM operations globally, including selling Opel in 2017 and withdrawing from the Russian market, it initially looked as though the company was preparing to call it a day in Korea ....

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