GM Offers $2.8 Billion Plan for Korean Unit

The Korean unit of General Motors Co. is to receive about $2.8 billion from its headquarters, for new investment to avoid falling out of business due to recurring losses. The company has gone through tough times for a while, and this affected its production volume. The purpose of the fund is to conduct research and create ways of building attractive model of cars, and to provide new facilities for business in the next ten years. The auto company also plans to fix its $2.8 billion debt through legitimate means. This was gathered from a Bupyeong-based lawmaker during a phone conversation. Bupyeong is also the location of GM Company Korea unit.

The company initiated a capital-intensive plan to create a product by March this year. With this huge capital plan, the company intends to create products that will compete favorably with rival companies in the auto industry. Activities to carry out the plan begins soon and will run efficiently throughout the next  decade. The company is so sure that its plans will work out this time, but did not disclose the financial request made to the South Korean government.

The current state of GM Korean unit was made public when it announced that it was closing down its Gunsan branch following repeated financial loss. The decision could be reversed if financial aid comes on time to save the escalating situation.

Seeking Support

GM opted for equity to come out of its $2.8 billion debt. This involved a huge sum and could place the company in an unfavorable position of paying a yearly interest of 200 billion won for as long as the debt lasts. According to an erstwhile head at Daewoo, the amount GM seeks from the Korean government and the Korean Development Bank is yet to be disclosed. However, about 500 billion won is being estimated. Due to the size of capital involved, the Korean government has taken some steps to find out if investing such huge amount of money in the company will yield good profits. An agency, Samil PwC, has been assigned to do some findings on the potential of the investment to yield returns.

GM hopes to regain its business position in Korea by increasing production rate. New SUVs will be produced at its Bupyeong and Changwon units. Korean lawmakers headed by Hong have held discussion with Barry Engle, GM’s international Chief, on the current state of the company in Korea. South Korean government is deliberating on ways to grow other businesses in Gunsan, since the area has been having employment problems due to GM business shut down which could affect 2,000 jobs. GM’s unit in Korea alone has about 16,000 staff, and around 150,000 jobs related to car manufacturing would be lost too. There is still the possibility that GM will completely move out of Korea, though the government is yet to support the decision. The general belief is that GM will recover and invigorate the Korean economy once again.

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 ゼネラルモーターズ（GM）は、韓国企業に28億ドルの新規投資計画を提案したと、与党のある議員が述べました。韓国にて今後10年を見越して提案されるこの投資は、新型車の研究開発、設備改修、事業再編のために必要とされていると、富平のホン・ヨンピョ議員は述べます。また、当自動車メーカーは、韓国企業の株式に対する27億ドルの株式交換を検討しているという。

 ゼネラルモーターズの広報担当者によると、3月にGM本部がGM韓国の製品計画を決定し、これが多額の支出につながるとのこと。GMが韓国から求める支援金額の明示を拒否しつつも、同氏は「我々は、この計画を通じて、今後10年間で業務と生産がスムーズに続くことを期待している」と述べています。損失拡大の譲歩が行われなければ、GMは5月末までに郡山組立工場を閉鎖し、韓国から完全に徹底することも可能であると発表した後、当自動車メーカーと韓国との間での対立が浮き彫りになりました。GMの最高経営責任者（CEO）であるメアリー・バラ氏は、世界規模で悪い業績を上げている事業部門の排除を進めており、韓国での事業運営の転換が急務であると警告しています。GM韓国は約3兆（28億ドル）ウォンの負債を抱えています。財政赤字の大きさは、GMが毎年約2000億ウォンの利息を支払わなければならないことを意味し、同社は株式へとこの借金を交換する必要がある、と同氏は語りました。

 GMは韓国政府と国家開発銀行からの支援額をまだ明確にしていないものの、KDBのGM韓国の17％の株式価値とほぼ同じ5000億ウォンになると予想されると、GM韓国の前身であるDaewoo Motorsの組合の前代表であるホン氏はコメントしています。

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通用汽车为通用韩国提供价值28亿美元的投资计划

来自韩国富平的立法者洪荣杓表示，通用汽车公司由于日益严重的亏损而威胁要退出韩国市场后，近日提出了一项价值28亿美元的新投资计划。

这笔长达10年的投资将被用于新汽车型号的研究、开发和生产、翻新设施和进行业务重组。

通用汽车当地部门的一位发言人说：“总部将于3月决定通用韩国的产品计划，并将由此带来巨额投资。我们希望我们的运营和生产在未来10年内通过这个计划继续顺利进行。”

通用汽车首席执行官玛丽巴拉一直在关闭全球业绩不佳的业务部门，并曾警告说通用韩国急需重大变革。

通用韩国拥有16,000名工人并在汽车零部件行业拥有15万个相关工作岗位