4/5/2013

GM Develops Contingency Plan for Korea

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General Motors Co. is working on a plan for its South Korean operations in the event that North Korea’s nuclear threats escalate, says CEO Dan Akerson.He tells CNBC that if rising military tensions became a danger to GM employees and facilities, the company might pull some staff out of South Korea and try to relocate vehicle production.

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General Motors Co. is working on a plan for its South Korean operations in the event that North Korea’s nuclear threats escalate, says CEO Dan Akerson.

He tells CNBC that if rising military tensions became a danger to GM employees and facilities, the company might pull some staff out of South Korea and try to relocate vehicle production. Akerson adds that the latter would be difficult and can’t be done quickly.

South Korea is a major Asian manufacturing base for GM, which employs about 17,000 workers at five plants in the country. Those factories build more than 1.4 million vehicles per year for local and international markets, including the Europe and the U.S.

Akerson notes that turmoil in South Korea, a big exporter of vehicles and parts, would affect much of the auto industry. 

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