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.