This week, General Motors and the Korean Development Bank announced a $7 billion investment deal to bail out the failing GM Korea unit. Besides concessions from the Korean auto union, 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. As part of the deal, GM will open a new Asia-Pacific headquarters in the country. The plan gives GM ten years to put itself back on track, and the automaker expects the division to turn a profit in 2019. And now, GM has revealed specific details behind its plan to turn around GM Korea.
Besides “a deep partnership among major shareholders, the workforce and the Korean government”, the viability plan is underpinned by two new global vehicle programs as well as an engine, which will require a record $2.8 billion investment in GM Korea.
Under the self-described “robust business plan”, GM has committed to:
- 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.
Stay tuned to GM Authority for more GM Korea news coverage, as well as for more GM news.
Comments
Two small SUV/CUV-type vehicles and a 3 cylinder engine cost $2.8 Billion ??? It’s no wonder GM is going bankrupt. If these new vehicles are anything like any other GM vehicles, they will also be not be ground breaking and at best somewhat competitive. Seems like a waste of Billions of Dollars to just forestall the inevitable.
Gm is not going bankrupt
As opposed to the Magic Playdoh Car factory that all the other companies have that just magically sh*ts out new products?
Bozo.
One can’t imagine a 3-cylinder engine being used in a small CUV unless the engine is a turbo-diesel; imagine a Chevy Trax like vehicle powered by a 1.2L DOHC-4v 3-cyl turbo-diesel engine which is base on the 1.6L 4-cyl turbo-diesel in the Chevy Cruze meaning 100 hp and 180 lbs-ft of torque.
“One can’t imagine a 3-cylinder engine being used in a small CUV unless the engine is a turbo-diesel;”
Says who? A boosted three-banger has been used by Ford for the last few years and the engine is a gem: efficient and punchy. GM also has one in China.
As internal combustion engines becomes more power-dense and as vehicles become lighter in weight, a three-banger is the next logical evolution of the engine for mainstream small cars.
A three-cylinder diesel could very well be… but don’t rule out a three-cylinder gasoline mill, either.
My mom bought Opel Crossland X with 3-cyl 1.2T and loves it. 110KM and auto transmission, plenty enough for that little CUV. She drove Passat 1.8T prior. Likewise Fords 3-cyl, GM has a gen of its own.
how can GM say they’re building a 3-cyl engine for global markets when they’ve pulled out of India and Europe?
I’m not sure that Asia-Pacific market including Aussie, Singapore, Thailand would buy decent numbers of 3-cylinder engined cars…especially without China. Maybe, Australia would buy some piece of I3 cars, likes of Trax? Not sure about others though, considering some cases like abandoning city car market of South Korea in 2021~2022…
How about selling back to Europe after selling off Opel
You mean, selling I3 engines to Opel-Vauxhall and PSA for Europe? I found out PSA is already using engines of same capacity(1.0 L 1KR-FE I3) came from Toyota. It means, we need to wait until Toyota-PSA’s collaboration for city cars is done. Or, something else…
Opel cars use 3-cylinder engines developed in the then GM ITDC (International Technical Development Center) in Rüsselsheim, the home of Opel. Those engines are being built in Opel’s engine factories in Szentgotthart (Hungary) and Vienna-Aspern in Austria.
But future Opel/Vauxhall models will use 3-cylinder engines developed by PSA, since using parts under licence of GM limits the number of countries where these cars may be marketed.
GM can come back with mass market cars 3 years after closing the sale, i.e. from 2020 on.
This deal sounds like a bankruptcy ; re-organization pact . Atleast GM isn’t completely abandoning small car production in south east Asia . The Japanese would have gladly moved in to replace those cars .
a new small SUV, could it be next trax? and a new CUV a next Captiva.
For the 3 cylinders engine, GM still has the one developed by Opel, it could be next generation of this engine.