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GM Plans To Cut 5,000 South Korea Jobs With Proposed $2.8 Billion Investment

A new document shed new light on the GM Korea negotiations as Reuters reported on Friday that the automaker plans to cut 5,000 jobs in the country alongside its proposed $2.8 billion investment.

The cuts would leave the GM Korea workforce at 11,000, down from the 16,000 employed now. The layoffs appear to include the 2,000 employees affected by the Gunsan plant closure.

GM submitted its investment plant to the South Korean government and asked for co-investment by the state-owned Korea Development Bank, which owns 17 percent of GM Korea. The government said it would conduct its due diligence before dishing out taxpayer money.

The document, viewed by Reuters, shows GM has plans to bring two new crossover models for production in South Korea as well as a compact vehicle’s engine. The new products would eventually create 1,100 new jobs over 10 years. One of the new vehicles is the next-generation Chevrolet Trax, while the other is an unnamed, all-new model. The next Trax would reach production in 2020, while the second crossover would enter production in 2022.

Both models will be geared toward the U.S. market and GM wants to keep annual production rates around 500,000 combined.

Former GM Authority staff writer.

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