General Motors wants to get complete control of its South Korean unit

Article by Christian A., on October 24, 2012

General Motors Co. wants to get a nearly complete control of its South Korean unit by purchasing a 17% stake held by the unit's second-largest shareholder. This move restored concerns that it could pave the way for restructuring steps. GM already owns nearly 77% of GM Korea but Korea Development Bank's 17% holding means that the state-run bank has the right to veto the automaker’s decisions.

South Korea represents a small market for GM but it’s one of GM’s major production bases. From this point, GM exports Chevrolet cars to Europe and other countries. In fact, it accounts for about 25% of the global production of Chevrolet. According to Tim Lee, GM's head of international operations, an "informal offer" was made to the bank's CEO Kang Man-soo in Friday’s meeting.

He said that the bank will think about a sale as soon as it gets an official proposal. GM Korea was formed when GM acquired a majority stake in the unsuccessful Daewoo Motor in 2002. GM is the No. 3 carmaker in South Korea after Hyundai Motor and Kia Motors. China's SAIC Motor Corp. owns the 6% stake left in GM Korea.

Local media have reported that an agreement may give GM some leeway if it implements restructuring at its plants in South Korea. In a Reuters report last January, GM may transfer some Chevrolet production from South Korea to Opel in Europe as part of its attempt to save the European unit. However, an executive denied such plans last May.

If you liked the article, share on:

Topics: gm, south korea

Comments

Recommended

Porsche recently decided that they will stick to their roots as long as they possibly could, and I mean as long as the market allows it. The automaker is assuring...
by - February 20, 2018
If there’s one Toyota car that has kept everyone guessing, it is the Supra. It is finally coming our way as it makes its return on March 6 at the...
by - February 20, 2018
The 2018 Alfa Romeo Stelvio Quadrofoglio is known as the world’s fastest SUV after proving itself lethal around the Nurburgring with a lap time of 7:51.7. Under its hood is...
by - February 19, 2018
After going through a number of tests in Germany, the BMW 320d was deemed to be fully compliant will all legal requirements by the German Federal Motor Transport Authority (KBA)....
by - February 19, 2018
Finally, another automaker is getting on the SUV bandwagon. About to reveal its very first SUV is Rolls-Royce, which stated that “the wait is almost over” as it prepares to...
by - February 18, 2018
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries