It’s crunch time for GM Korea today – the beleaguered company is holding a board meeting later this evening to make a decision on whether to file for bankruptcy if it fails to reach an agreement over its turnaround and restructuring plans, Yonhap News Agency reports.
Meanwhile, the company and its union are said to be continuing talks in a last-minute effort to avoid it being placed under court protection. Discussions are hoping to find common ground in the rescue plan, with GM looking at wage concessions and the suspension of some benefits for workers. Talks up to now have failed to reach a preferred situation. Even if an agreement is reached, a deal would still be subject to a vote by union members.
In February, the automaker said it was shutting down one of its four South Korean factories by May, stating unequivocally that union concessions as well as government support were needed for it to remain operating in South Korea. The country’s finance minister Kim Dong-yeon has however said that public funds can only be used to support the company if it was clear that the business could survive on its own long-term.
State-run Korea Development Bank (KDB), which holds a 17% stake in GM Korea, has said it could inject about 500 billion won (US$470 million) into the company if it finds the results of due diligence on the unit satisfactory, the report added.
The company – which produces a variety of Chevrolet models – recently posted an annual net loss of US$1.1 billion (RM4.28 billion), its fourth straight year in the red. Some 2,600 employees out of the company’s total workforce of 26,000 have filed for voluntary retirement and applied for a redundancy package.
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No problem … Ask Geely… After all even Proton they buy thinking it’s a Volvo
Korea govt copy P1 bailout plan, Public funds can only be used to support if it was clear the business could survive on its own long-term.
Still cannot beat our Proton bailouts. Lost billions also and still cannot make money, gomen keep on pumping money into Proton.
Lucky China Geely saved Proton and Malaysia. Hopefully we get more Mainland people into Malaysia to run companies, especially GLCs
But Pekema oredi komplen non-bumiputera leader unwilling to help bumiputera dealers that could lead to the downfall of PEKEMA dealers.
Geely China can spread its wings to korea.
Habislah kimchi! Ini mesti salahan GST ni…
DRB dealer Chevrolet GM. Ini mesti salahan DRB ni…
GM kimchi havis cuz of DRB? Apa logic ni?
Very sad to see when a company goes under. Chevrolet is not a bad car. My sis has a Chevrolet Orlando and it has never given her any problems at all. Built quality is really good.
However Naza sucks big time! They have 0 loyalty towards their customers and they are just waiting to void your warranty for the flimsiest of excuses. When you want to complete with more established brands, you need to treat your customers with respect!
Buy Toyota or Honda….
Serves them right, their cars are garbage. I regret buying their ‘chevrolet captiva’ until today.
Looks like a nice SUV. What’s wrong with it? Is yours the earlier or facelifted model? 2.0 Turbo Diesel or 2.4 petrol?