April 26, 2024

• 

[THE INVESTOR] Today is the last day that workers at GM Korea can volunteer to retire, unless the carmaker decides to extend the deadline.

All employees who don’t apply are expected to be dismissed, with the exception of what GM Korea perceives as a “minimum number of workers” necessary for operations. 

GM International President Barry Engle (center), is at parliament with GM Korea CEO Kaher Kazem (left).    The Korea Herald

RELATED:
Wage talks at GM Korea end without progress
Korea to scrutinize GM’s transfer pricing, cost to selling price ratio


As of Feb.27, only about 1,000 out of around 16,000 of GM Korea workers have applied, according to figures from the carmaker’s union. 

Most of the applicants are said to belong to GM service centers and the Bupyeong plant. Not too many from the Gunsan plant are said to have applied.

On Feb.13, GM Korea decided to shut down its Gunsan plant, which employs about 2,000 people. That was when the carmaker also announced that it would be receiving applicants for voluntary retirement. The package consist of severance pay, along with salaries worth three years.

Meanwhile, another major factor that will affect GM’s survival will be what kind of cars the US headquarters has to offer. GM representative Barry Engle recently told the Korean government and parliament that the headquarters plans to assign two new cars.

A final decision is expected to be reached this month, along with the production volume, but many expect the cars to be either CUVs or SUVs.

Previously, Renault Samsung Motors was able to make a turnaround with strategic new cars that helped boost sales here.

GM Korea is planning step up restructuring measures to stay afloat in Korea amid rising losses. Since 2014, it has not been able to post profits. Last year, the carmaker is estimated to have posted a record-breaking operating loss of up to 900 billion won (US$828 million).

By Song Seung-hyun (ssh@heraldcorp.com)