February 8, 2018 / 10:59 AM / in a year

GM executive meets mayor of South Korea's biggest factory town on restructuring effort

SEOUL (Reuters) - General Motors (GM.N) called for cooperation over its restructuring effort in South Korea as a top executive of the U.S. automaker met the mayor of the South Korean city of Incheon where it operates its biggest manufacturing plant in the country, a city official and GM’s South Korean unit said.

GM International President Barry Engle and the South Korean mayor met two days after the automaker said that its operations in the country might need additional restructuring and re-ignited concerns over a potential pullout.

Engle told the mayor that GM faced a difficult situation in South Korea and was looking for a restructuring plan, but did not mention a withdrawal, a city official said on Thursday.

GM’s Korea operations have been struggling with rising labor costs and slumping domestic sales.

GM Korea confirmed the meeting but did not give further details.

“GM Korea is continuing a wide range of discussions with its business partners to further improve its competitiveness and cost base. Our goal is a profitable and viable future for GM Korea,” the company said in a statement.

Reporting by Ju-min Park; Editing by Amrutha Gayathri

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