The Currency Scene:
News, Events, and Stories about currency from around the world.

(Reuters) - General Motors Co’s (GM.N) South Korean unit reiterated on Friday that it should return to profitability by 2019 and that it will invest $2.8 billion in a new, small SUV as well as a crossover vehicle for the local market and for export.

image
The logo of GM Korea is seen at its Bupyeong plant in Incheon, South Korea March 12, 2018. REUTERS/Kim Hong-Ji

This followed a more subdued outlook for the troubled unit from the state-run Korea Development Bank (KDB), which said on Friday the unit should swing to a profit from 2022 on the back of cuts in labor costs.

GM had said last month it could return to profitability in 2019 with $400 million to $500 million in annual cost reductions through plant closures, labor and other efficiencies.

GM and South Korea have agreed on a rescue package worth $7.15 billion, including $2 billion of capital spending by GM and a $2.8 billion debt-for-equity swap for existing loans GM Korea owes to its parent.

As part of its plan, GM Korea said it would design, engineer and manufacture an all-new small SUV, and an all-new crossover vehicle for Korean consumers and for export to other markets.

It also plans to engineer and manufacture a small, fuel-efficient three-cylinder gasoline engine in Korea.

“GM Korea now has the right fundamentals to grow a successful business in Korea for the long term,” the company’s Chief Executive Kaher Kazem said in a statement.

Editing by Bernadette Baum

Read more from our friends at Reuters:

Pin It

The Logo Story

currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

Visit the CurrenScene Media Page