General Motors head of international operations, Barry Engle, reportedly told South Korean lawmakers that the automaker has plans to build two new vehicles in the country, Reuters reported on Tuesday.
While the new production allocations are good news in GM Korea’s restructuring talks, it’s not clear if the new vehicle production pends on other factors. GM proposed a $2.2 billion debt to equity swap for GM Korea in exchange for government financial support up to $1 billion. The new model production may be attached to GM’s proposal.
Nor is it clear which production facilities would receive the new vehicles. GM will close the Gunsan plant in May 2018, which builds the Chevrolet Cruze, Holden Astra sedan and Chevrolet Orlando.
GM also launched a voluntary redundancy program for its 16,000 workers across GM Korea. The automaker will lay off 2,000 workers as part of the Gunsan shutdown.
The automaker has also said it prefers to remain in South Korea, but final decisions depend on support from the government. South Korean President Moon Jae-In promised job creation would be a cornerstone to his administration, which may put the government in a tough spot when negotiating with GM.