GM Reveals $7.3 Billion Investment Amidst Layoff Speculation in South Korea
General Motors Co. said it plans to make investment worth of $7.3 billion in its unit in South Korea for the next 5 years in an attempt to relieve fears that it wanted to cut production and employees in the country.
Concerns that the American automaker was set to decrease its presence in South Korean started when it showed uninterested in taking over full control of GM Korea by purchasing only 17% stake from the unit's second-biggest stockholder. This decision was perceived to be its move for reconstruction.
The speculation went at its peak when GM Korea announced in 2012 its decision not to continue building the next-generation Chevrolet Cruze small auto in the country.
General Motors recently emphasized that its 8 trillion won investment to improve its engineering and manufacturing capabilities only implies the importance of the Asian country as a key development and production bas.
The automaker's international operations head, Tim Lee, further explained that GM Korea will still play a major role in their plans for global growth.