The Cost of Saving GM Korea? $2.8 Billion, Report Claims
Amid frantic restructuring designed to keep General Motors’ money-losing Korean operations afloat, the automaker has proposed a $2.8 billion investment, a new report claims.
According to Reuters, a South Korean government official said GM would invest the funds over the span of 10 years, though not all of that money would come from the automaker’s coffers.
The country’s state-run Korea Development Bank (KDB) holds a 17-percent stake in GM’s Korean subsidiary, and is reportedly being asked to provide $476 million in investment. GM Korea announced the impending closure of its Gunsan assembly plant last week, but hasn’t yet decided the fate of three remaining plants in the country.
On Tuesday, Reuters reported on a seperate $2.7 billion debt-to-equity swap proposed by GM as a way of securing government support, as well as tax benefits. Part of the overall rescue plan includes the production of two new models in South Korea, one lawmaker said. The automaker hasn’t confirmed any of these proposals.
While the proposals seem promising, the government remains wary. South Korea’s trade minister, Paik Un-gy, said on Wednesday that the government wants an audit into GM’s “opaque” management in the country, CNBC reports. It’s hoped an audit will determine if GM’s proposals can truly save the operation.
“By opaque we mean the high rate of profits to raw material costs, interest payments regarding loans and unfair financial support made to GM’s headquarters,” Paik told reporters.
Meanwhile, GM’s 14,000 unionized Korean workers are prepared to strike if the automaker decides to pull up stakes in the country, labor boss Lim Han-taek said Wednesday.
[Image: Wikimedia Commons ( CC BY-SA 3.0)]
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- Jeanbaptiste Any variant of “pizza” flavored combos. I only eat these on car trips and they are just my special gut wrenching treat.
- Nrd515 Usually for me it's been Arby's for pretty much forever, except when the one near my house dosed me with food poisoning twice in about a year. Both times were horrible, but the second time was just so terrible it's up near the top of my medical horror stories, and I have a few of those. Obviously, I never went to that one again. I'm still pissed at Arby's for dropping Potato Cakes, and Culver's is truly better anyway. It will be Arby's fish for my "cheat day", when I eat what I want. No tartar sauce and no lettuce on mine, please. And if I get a fish and a French Dip & Swiss? Keep the Swiss, and the dip, too salty. Just the meat and the bread for me, thanks. The odds are about 25% that they will screw one or both of them up and I will have to drive through again to get replacement sandwiches. Culver's seems to get my order right many times in a row, but if I hurry and don't check my order, that's when it's screwed up and garbage to me. My best friend lives on Starbucks coffee. I don't understand coffee's appeal at all. Both my sister and I hate anything it's in. It's like green peppers, they ruin everything they touch. About the only things I hate more than coffee are most condiments, ranked from most hated to..who cares..[list=1][*]Tartar sauce. Just thinking about it makes me smell it in my head. A nod to Ranch here too. Disgusting. [/*][*]Mayo. JEEEEZUS! WTF?[/*][*]Ketchup. Sweet puke tasting sludge. On my fries? Salt. [/*][*]Mustard. Yikes. Brown, yellow, whatever, it's just awful.[/*][*]Pickles. Just ruin it from the pickle juice. No. [/*][*]Horsey, Secret, whatever sauce. Gross. [/*][*]American Cheese. American Sleeze. Any cheese, I don't want it.[/*][*]Shredded lettuce. I don't hate it, but it's warm and what's the point?[/*][*]Raw onion. Totally OK, but not something I really want. Grilled onions is a whole nother thing, I WANT those on a burger.[/*][*]Any of that "juice" that Subway and other sandwich places want to put on. NO, HELL NO! Actually, move this up to #5. [/*][/list=1]
- SPPPP It seems like a really nice car that's just still trying to find its customer.
- MRF 95 T-Bird I owned an 87 Thunderbird aka the second generation aero bird. It was a fine driving comfortable and very reliable car. Quite underrated compared to the GM G-body mid sized coupes since unlike them they had rack and pinion steering and struts on all four wheels plus fuel injection which GM was a bit late to the game on their mid and full sized cars. When I sold it I considered a Mark VII LSC which like many had its trouble prone air suspension deleted and replaced with coils and struts. Instead I went for a MN-12 Thunderbird.
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Time to flog the dead horse off to someone. Chinese? Nope. PSA, again? They have enough capacity already. I saw current Renaults re-badged as something when recently in Seoul. Samsung Renault? Maybe they'd need some factories....
@Manac--Tata Motors could be a potential suitor. At least the Daewoo cars do not catch on fire like the Tata Nano.