GM may file for bankruptcy in South Korea if unions don’t agree to restructuring
Seoul — General Motors said it intends to file its South Korean unit for bankruptcy if its labour 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 CEO, told union leaders on Monday that the company needs employees’ support by the end of this month, a spokesperson 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. GM is seeking concessions from the union to revive its South Korean business that’s been hurt by mounting losses. In February, GM offered a $2.8bn new investment plan to turn around the unit over the next 10 years following a threat to exit the country entirely. Engle told union leaders that GM Korea faces making $600m in payments by the end of April to v...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.