The city of Gunsan, South Korea, has been declared an “Industrial Crisis” zone following news that General Motors will close the Gunsan plant located in the city. Reuters reported on Thursday that it’s the first time an area has qualified for the designation.
Previously, Gunsan was considered a “crisis zone for industry and employment” to focus on curbing high unemployment rates in the area. The new designation will give access to more financial support for business affected by the GM plant’s closure.
Thus far, South Korea’s central bank has allocated $38 million to aid small- and medium-sized companies also affected by the closure.
GM has yet to decide the fate of South Korea’s other manufacturing plants. The automaker proposed a $2.8 billion investment plan over 10 years to secure its presence in the country, though it asked the South Korean government to co-invest. The Korean Development Bank is conducting its due diligence before making a decision.
Meanwhile, GM is reportedly considering a shift cut at the Bupyeong plant—another under-capacity facility.
Comments
Well, maybe they can become sister cities with Flint.
How about Detroit, Saginaw, Grand Rapid’s and Flint. Then we paid Transplants to assemble here.
Wasnt this site reporting how GM would give in to the Korean government and continue in Korea?
Great to see all the reinvestment by GM and other auto companies, even the Japanese, in the U.S. again. Time for the Koreans to pay for their own subsidies. Thanks Mary Barra.
The Korean people have themselves to blame for being too Nationalistic and not welcoming GM vehicles like the citizens of China who actually love their Cadillac brand cars possibly more than even US buyers.
The difference might be that Korea was conquered and subjugated by US troops with three subsequent dictators imposed on South Korea, whereas China was conquered by the Chinese themselves, since the US soldiers rebelled in 1945 calling “Bring our boys home” and refusing to wage war for conquering China when the publicly claimed war goal was said to be just to bring down Japan. So the Chinese seem to feel themselves to be free in their own country while Korea still has to cope with foreign troops being in ROK and practicing every year the continuation of the war which ended in 1953 only in an armistice, but not a peace.
The problem reside in GM management, Korea can help to go in every market GM can export to everywhere from Korea and North America. Second point GM can rebirth the Daewoo brand which will be well received in Korea.