GM Korea outlines viability plan to return to profitability by 2019; $2.8B investment in 2 vehicle programs
Troubled GM Korea Company announced a business plan that is intended to return the company to profitability by 2019. This viability plan will be underpinned by a record $2.8 billion investment in two new global vehicle programs and a deep partnership among major shareholders, the workforce and the Korean government.
Additionally, GM and the Korea Development Bank (KDB) have agreed on a balance sheet restructuring that will allow GM Korea to reduce its existing debt by approximately $2.8 billion.
The company’s two major shareholders, KDB and General Motors, confirmed their full support of the viability plan by finalizing a breakthrough binding agreement that will help enable a profitable, long term future for GM Korea.
Under the plan, GM will:
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.
Based in Incheon, Korea, GM Korea has made significant contributions to the Korean economy and automotive industry over the last 16 years, producing 10 million vehicles since its establishment in 2002. GM Korea supports approximately 200,000 direct and indirect Korean jobs. In 2017, GM Korea sold 132,377 units in Korea and exported 392,170 vehicles to 120 markets around the world.