- GM (GM) is reportedly planning to reduce production in South Korea by up to 20% by 2016 and close its two factories in Australia, where the high dollar has hurt the carmarker's competitiveness. In Korea, the company has had to deal with high wages and labor unrest.
- The cutbacks would add to the shutting of a factory in Germany and GM's decision to significantly scale back Chevrolet sales in Europe.
- The ending of Australian manufacturing would follow similar moves by Ford and Mitsubishi, and would come after the new government indicated it would phase out support for the auto industry.
- "They (GM) are starting to act like a global organization and are breaking up the fiefdoms," says Morgan Stanley auto analyst Adam Jonas. "The financial controls have been changed and there is more accountability to Detroit."
GM to slash S Korea output, end Australian production
Dec 9 2013, 03:47 ET