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The Korea Herald
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THE INVESTOR
March 28, 2024

Automobiles

Korean operations to turn around next year: GM CFO

  • PUBLISHED :April 30, 2018 - 14:15
  • UPDATED :April 30, 2018 - 14:35
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[THE INVESTOR] General Motors CFO Chuck Stevens said on April 30 the agreement reached last week by the carmaker’s Korean unit will lay the foundation for a turnaround next year.

In a conference call to talk about its first-quarter results, Stevens said GM Korea will be able to reduce costs by US$400-500 million a year by shutting down one of four car assembly plants in Korea and reorganizing the overall workforce. 


GM CFO Chuck Stevens
Bloomberg



He said GM Korea, under a package of restructuring measures, is expected to make a profit from 2019 onward based on various cost-cutting efforts. GM owns a 77 percent stake in GM Korea, with the state-run Korea Development Bank and SAIC Motor Corp. controlling 17 percent and 6 percent, respectively.

From 2014-2017, GM Korea posted 3.134 trillion won in accumulated net losses due to a lack of new models and lower demand.

To help buoy sales in Korea, GM Korea plans to import the Chevrolet Equinox sport utility vehicle from the U.S. beginning in June amid a rising demand for SUVs, a company spokesman said.

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

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