GM denies linking investment plan to state support

GM Korea on Tuesday denied local reports that Barry Engle, president of General Motors International, had proposed an investment scheme to the Seoul government worth some $1 billion in exchange for increasing production at a local plant during his visit last week.

“President Barry Engle met related officials to discuss the future of GM Korea. We continue to work with key stakeholders to turn around our financial performance,” said a spokesperson of GM Korea. “However, there were no financial investment proposals made.”

Engle’s visit was made amid persistent market rumors over the possibility of GM Korea withdrawing from the country as part of GM’s global restructuring, and due to plummeting sales here.

According to reports, Barry Engle had asked the government to handle the $1 billion debt that reaches maturity on Jan. 31. In return GM would allocate annual production of 200,000 vehicles for export at the company’s factory in Gunsan, North Jeolla Province.

(Yonhap)

GM Korea has stopped operating the Gunsan plant, which makes the Orlando SUV and all new Cruze sedan, for a month until Jan. 22 for an equipment checkup, which usually takes up to 15 days.

The Ministry of Trade, Industry and Energy also denied discussion on the investment.

“President Barry Engle had paid a courtesy visit to Minister Paik Un-gyu. GM explained business conditions at GM Korea alongside future plans. There were no detailed proposals or requests made,” the Ministry of Trade, Industry and Energy said in a statement.

GM Korea sold a total 524,547 units -- 132,377 units here and 392,170 units overseas -- last year, down 12.2 percent year-on-year from 2016. 

By Kim Bo-gyung (lisakim425@heraldcorp.com)