GM Calls for “Shared Sacrifice” to Save Korean Unit

March 13, 2018 at 11:54 AM

General Motors Co. President Dan Ammann says the company’s South Korean operations could become a sustainable and profitable business—but only if stakeholders move quickly on a restructuring plan.

“Time is short, and everybody must move with urgency,” Ammann tells Reuters. GM Korea warned last week that it faces a cash crisis within the next few weeks when a loan payment to GM of nearly 2 trillion won ($1.9 billion) comes due.

The U.S. carmaker has offered to convert $2.7 billion in GM Korea debt into equity if Korea will cover the impending loan payment. GM also has presented a plan to invest $2.8 billion in its Korean operations over 10 years if the restructuring, including labor concessions, is successful.