GM to shut down S.Korean plant

(MENAFN) The South Korean unit of General Motors Co. said it will shut down one of its four car assembly plants in the country by the end of May due to lower demand for its vehicles.

The intended plant is in Gunsan, 270 kilometers south of Seoul, as it has been underutilized, running at 20 percent of its aptitude for the past three years.

The decision comes as part of the Detroit-based carmaker's broad restructuring program across the world, as it has been significantly phasing out or shutting down underperforming businesses and it "is now focused on finding a solution for its South Korean operations."

GM Executive Vice President said: "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."

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