Economics
GM, South Korea Set for Standoff After Automaker Threatens Exit
- Gunsan plant making Chevy Cruze, Orlando to shut by end of May
- Factory closing will result in up to $850 million in charges
Photographer: SeongJoon Cho/Bloomberg
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General Motors Co. and South Korean authorities are set for a standoff after the automaker announced a plan to shut one factory and threatened to leave the country entirely if concessions aren’t made to stem mounting losses.
South Korean officials will hold talks with GM about ways to keep the carmaker’s operations open, the finance ministry said in a statement Tuesday. The state-run Korea Development Bank also will conduct due diligence to assess GM’s Korean business over the last few years, the ministry said.