[Yonhap Photo]
SEOUL, Feb. 20 (Aju News) -- General Motors will decide next month whether to maintain a production capacity of 500,000 units in its plants in South Korea by allocating two new vehicles here, an executive from the U.S. carmaker said Tuesday.
Following a meeting with South Korean lawmakers at the National Assembly in Seoul, GM Executive Vice President Barry Engle told reporters, "It is our preference to stay here in Korea and to fix the business and make it a healthy environment. In order to do that, there is a turnaround plan that we have developed. That plan includes significant investments and new products."
The turnaround plan also includes restructuring activities that require "cooperation and helpful support" from all of the stakeholders in GM Korea Co., he said.
As for GM's long-term plan to turn its Korean business around, Engle said the Detroit-based carmaker may consider allocating two new vehicles to its plants in Bupyeong, just west of Seoul, and Changwon, 340 kilometers south of the capital city, so as to maintain sufficient annual production volume.
But he didn't say if GM may consider allocating the new car models here on the condition that the Seoul government extends a helping hand to its loss-making Korean unit. With regard to new models, industry sources here said securing meaningful production volume will be a critical factor in GM's continuing presence in the country.
GM is expected to commit to product allocation in Korea if the Seoul government and its 13,000-strong union outline aggressive self-help efforts. GM confirmed it recently asked for full-scale cooperation from all of its stakeholders.
"We are asking our union to also help and to contribute, and the government as well," Engle said Tuesday, adding that there will be a more appropriate time later to talk about discussions with the government since the details are private right now.
Asked if GM may consider a withdrawal from Korea if no support is forthcoming, the executive said, "There is a lot of work to do to make that happen, but I am very encouraged by the discussions and optimistic."
But the Seoul government and the KDB are not likely to accept GM's stance without conditions of its own, as it would be required to use taxpayers' money. The policy lender wants GM to specify its investment plans in its Korean unit.
(Yonhap)
reporter
Lim Chang-won
cwlim34@ajunews.com
