GM’s Closing Its Gunsan Plant In South Korea

General Motors is in the process of slimming down its overseas operations. And the latest step involves closing one of its plants in South Korea.

The Gunsan plant has in recent years been used to manufacture the Chevy Cruze and Orlando. But it’s been running at about 20 percent of its total capacity for the last three years, “making continued operations unsustainable,” according to the automaker.

Shutting it down won’t be a simple matter, though. The facility includes a press shop, body shop, workshops for components like seats and air-conditioning, and an on-site proving ground. Its closure is estimated to cost GM Korea some $850 million.

Gunsan is one of four assembly plants that GM operates in the country, along with four additional engine factories, design and engineering facilities, and a larger proving ground. The sites fall under the auspices of GM Korea, the division formed after the company acquired Daewoo Motors in 2002. The plant’s closure is part of a more comprehensive turnaround plan for the division.

“This is a necessary but difficult first step in our efforts to restructure our operations in South Korea. We recognize the contribution and support of our employees, the wider Gunsan and Jeonbuk communities and government leaders, particularly through the most recent difficult period,” said Kaher Kazem, president and CEO of GM Korea. “We are committed to supporting all of our affected employees through this transition.”

GM Korea isn’t the only overseas division under review. The industrial giant recently shut down its manufacturing operations in Australia and sold off most of its European operations as well.

“The performance of our operations in South Korea needs to be urgently addressed by GM Korea and its key stakeholders. As we are at a critical juncture of needing to make product allocation decisions, the ongoing discussions must demonstrate significant progress by the end of February, when GM will make important decisions on next steps,” said Barry Engle, president of GM International.

more photos...
Made In Alabama: Mercedes-Maybach GLS Will Cost Around $200k

The Maybach GLS will become the most expensive car made in the US.

2020 Mercedes-Benz GLC Coupe Is “Coming Soon”, Says Official Teaser

Mercedes has previewed the facelifted GLC Coupe using a short teaser video.

Mercedes Weary Of Surging Red Bull, Impressed With Honda Engine

Red Bull’s Max Verstappen was impressed with his car’s straight line speed in Australia.

Ford Begins Layoffs In Europe, Cuts More Than 5,000 Jobs In Germany

In addition to the Germany layoffs, Ford will cut an unspecified number of jobs in the UK too.

Middle East Customer Commissions Five “Pearl Of The Gulf” Bentley Bentaygas

This Bentayga special sports a pearl-themed bespoke interior with a fingerprint-operated safe box.

High-Riding Porsche Taycan Cross Turismo Coming In 2020

The Taycan Cross Turismo was initial scheduled in for a 2021 launch, but Porsche decided to bring it forward.

Mazda Admits It’s Considering A Return To 24 Hours Of Le Mans

Until 2018, Mazda was the only Japanese manufacturer to win Le Mans, in 1991 with the 787B.

Elon Musk Makes Sure We See The Teaser Of Tesla’s “Cyberpunk” Truck

The all-electric Tesla pickup truck will debut later this year with seating for six and a 400- to 500-mile range .

2020 Cadillac CT5 Is A Bold Replacement For The ATS And CTS

The CT5 will launch later this year in two trim levels and with a choice of two engines.

Ferrari Recalls Cars Over Fire Risk, Including Multi-Million Dollar LaFerrari Aperta

A faulty fuel vapor separator on a number of Ferraris may crack and allow fuel fumes to leak.