Gradually, GM is cutting its cards in its – increasingly – extensive program of restructuring – not to mention cessation – of its industrial activities in South Korea .
Automotive News reports that GM Korea has stopped production at a power plant (GMP), which is located near the Gunsan plant, which was announced by General Motors on 12 February.
Three days before the announcement of the cessation of its activities at the Gunsan assembly site, GM Korea has stopped producing at this nearby plant. Directly impacting nearly 100 jobs on the nearly 2,000 deletions scheduled as part of his plan.
The site has so far produced 2.0-liter diesel engines for the Chevy Captiva, built at a plant in Incheon, about 100 miles away. The engines of the Chevrolet Cruze and Chevrolet Orlando, manufactured by the Gunsan plant, are imported from Opel in Europe.
GM says closing powertrain site should have minimal impact on GM Korea production from Bupyeong to Incheon , which also produces powertrains and assembles the Captiva, Aveo, Trax and Malibu models for Chevrolet. A spokesman for the manufacturer has indeed said that the plant had other sources of supply for engines.
GM also plans to stop operating an exclusive shipping dock within 1.5 miles of the plant.
General Motors expects closure of up to $ 850 million , including $ 475 million in non-cash asset impairment and up to $ 375 million in cash expenditures, primarily related to employee salaries . Expenses will essentially be recorded in the second quarter, GM said.