GM Korea Threatens Bankruptcy Unless Revival Plan Gets Support
- Carmaker putting pressure on unions as part of turnaround plan
- Company seeking to salvage Korean unit after mounting losses
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General Motors Co. said it intends to file its South Korean unit for bankruptcy if its labor union fails to agree on a restructuring plan that needs to be outlined within the next four weeks, putting pressure on employees and the government to help it stay afloat in the country.
Barry Engle, GM’s international chief, told union leaders on Monday that the company needs employees’ support by the end of this month, a spokesman for GM in Seoul said. April 20 is the deadline for GM to submit its turnaround proposal to the government, and the company is seeking a tentative agreement with unions well before that, the spokesman said.