Following news that General Motors and South Korea have agreed to a $7 billion bailout package for GM Korea, the automaker also announced the country will be home to its new regional headquarters.
GM chose South Korea as its new home for an Asia-Pacific headquarters to oversee operations in South Korea, Australia, India and Thailand. China is excluded from the new site. The site will reportedly replace the GM International headquarters in Singapore (see more on the GM Singapore office), according to a Thursday CNBC report.
GM had already cut workers from the Singapore office as it honed its focus on the United States and China. GM has also restructured its operations in India, Indonesia and Australia. GM Korea will stay afloat, though the automaker still plans to close down the Gunsan plant. The closure will affect some 2,000 workers. However, GM and the local union agreed to work together and find new positions for the laid-off employees.
Additionally, GM said it wants to purchase more parts from South Korean suppliers for its overseas operations. In return for the purchase commitment, South Korea will provide funding for the development of parts for electric and self-driving cars.
Comments
Hope it can go further after 10 years. If they do that way, they can recover faith from customers, labours, suppliers, developers in South Korea. Only if they decided to produce cars in Korea with good quality and competitive package, proper service and pricing policy for Koreans… Of course, need to do their best in other countries where they produce, sell their products as well. Likes of Australia, China, North and Sorth America, Mexico, etc.
GM need to utilize this as a opportunity to fix everything wrong in Korean market. No more expensive-yet-poor product package, no more poor customer service, no more abandoning trusts come from everyone who’s working with then, and who’s purchasing their cars.
This could be an even bigger boom depending on where the NKorea/SKorea situation goes, it could take several years or even decades to develop, but NKorea could be GM’s next China.