- Record $2.8 billion investment in high-demand, high-margin SUVs and CUVs supports tens of thousands of jobs directly and indirectly in Korea
- Investment and business optimization will underpin GM Korea’s long-term financial viability
- Restructured balance sheet will reduce GM Korea’s debt by about $2.8 billion
- Chevrolet comeback campaign in place to reassure customer confidence and boost sales
SEOUL – GM Korea Company today announced a robust business plan that is intended to return the company to profitability by 2019.
This viability plan will be underpinned by a record $2.8 billion investment in two new global vehicle programs and a deep partnership among major shareholders, the workforce and the Korean government.
Additionally, GM and the KDB have agreed on a balance sheet restructuring that will allow GM Korea to reduce its existing debt by approximately $2.8 billion.
The company’s two major shareholders, the Korea Development Bank (KDB) and General Motors, confirmed their full support of the viability plan by finalizing a breakthrough binding agreement that will help enable a profitable, long term future for GM Korea.
“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 an all-new small SUV for Korea and export markets
- Manufacture an all-new CUV-type vehicle for Korea and export markets
- Engineer and manufacture a small three-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.”
Based in Incheon, Korea, GM Korea has made significant contributions to the Korean economy and automotive industry over the last 16 years, producing 10 million vehicles since its establishment in 2002. GM Korea supports approximately 200,000 direct and indirect Korean jobs. In 2017, GM Korea sold 132,377 units in Korea and exported 392,170 vehicles to 120 markets around the world. Additional information on GM Korea and its products can be found at www.gm-korea.co.kr.
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General Motors Co. (NYSE:GM) has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.