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...
Audi Is Killing The TT, Will Replace It With An Emotional EV

Besides announcing plans to kill the TT, Audi Chairman Bram Schot suggested the next A8 could be an EV.

Audi Confirms More Luxurious A8 Flagship, May Revive Horch Name To Rival Mercedes-Maybach

Ingolstadt might revive the Horch name, which has been dormant for a century.

Dashcam Footage Shows An F-16 Jet Pilot Ejecting Seconds Before Californian Crash

The F-16 fighter jet slammed into a warehouse and injured 13 people.

Mercedes-AMG SL 63 Could Be Axed By The End Of The Month

Stricter emission standard might have sealed the fate of the SL 63 roadster.

Skoda Superb Gains High-Riding Scout Variant For The First Time

The Skoda Superb Scout comes with standard AWD, 15-mm higher ground clearance, and SUV-like styling.

Honda Built Two New Civic Type R Concepts, One With Over 400HP, And This Rally Beast

Dakar-inspired or road-legal with 400hp? New Civic Type R concepts beg the question.

Tesla Model 3 Passes Moose Test Like A Slithering Snake

The electric sedan was aided by the clever packaging with the batteries mounted in the floor.

Facelifted Skoda Superb Sportline Brings RS Looks, Up To 268 Horses

Restyled Skoda Superb Sportline comes as a hatch or wagon and brings a sporty-flavored design inside and out.

New Opel Corsa Unveiled In Pure Electric Form With 134 HP And 330 Km Range

The fully electric Opel Corsa-e has a 50 kWh battery and an instant torque output of 191 lb-ft.

Special Toyota Supra Matte Storm Gray Limited To 24 Units In Japan

Toyota will allocate the special 24 Supras through a lottery to be drawn during the Nurburgring 24 Hours.