Detroit based carmaker is facing strong headwinds in South Korea. Persistent remours have fueled talks of a pullout.
On Friday, South Korea’s finance minister stated the country is weighing several options vis-a-vis General Motors Co’s operations in the country following a call for help from the U.S. carmaker over its restructuring efforts.
Facing a slump in the domestic car market, and with rising labor costs GM’s Korea operations have fueled concerns of a potential pullout.
“We are preparing for various possibilities,” said Kim Dong-yeon, South Korea’s Finance Minister to lawmakers, without providing any further details.
Persisting talks of GM’s exit from South Korea has raised concerns in cities where the U.S. carmaker operates manufacturing plants.
GM Korea’s shareholding structure, has GM holding 77% stake, South Korea’s state-run development bank holding 17% stake while the balance 6% is held by China’s SAIC Motor Corp Ltd.
A South Korean vice finance minister disclosed that General Motors had, in a recent meeting, said it “needed cooperation”; the vice finance minister did not elaborate on whether the Detroit-based carmaker had asked for financial support from the government.