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GM Technical Center Korea begins operations

All Headlines 14:31 January 02, 2019

SEOUL, Jan. 2 (Yonhap) -- GM Technical Center Korea, Ltd., a newly built R&D company that is officially separate from GM Korea Co. started work Wednesday with a 3,000-strong workforce.

In December, General Motors Co.'s last ditch efforts to establish a separate R&D corporation in Korea made headway when the state-run Korea Development Bank (KDB), the second-biggest shareholder in GM Korea after GM, accepted the research and development (R&D) separation plan.

But GM Korea's 7,000-member union remains unhappy with GM's idea of running an R&D firm separately from its production facilities in Asia's fourth-biggest economy. The union sees the plan as a step by the Detroit carmaker to scale down its plants here in the long term.

The new stand-alone R&D center will lead the global engineering for two vehicle programs allocated to GM Korea's manufacturing operations in May last year -- a subcompact sport utility vehicle and a crossover utility model -- as part of the company's viability plan, GM Korea said.

"Now it is critical that all stakeholders do everything they can to deliver these important programs -- and also to support turning around the financial performance of our operations, to be sustainable and profitable for the long term," GM Executive Vice President Barry Engle said in a statement released last month.

GM Technical Center Korea begins operations - 1

kyongae.choi@yna.co.kr
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