General Motors hopes to increase control of its South Korean car manufacturing unit, GM Korea, according to local reports.
General Motors owns a 77% stake in its subsidiary with state-owned Korea Development Bank controlling 17% and China’s SAIC Motor Corporation the remaining 6%.
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A source within the Korean Development Bank told local reporters GM made an informal offer for its stake in the company during a recent meeting. He added KDB would consider the sale once a formal offer had been received.
GM originally took control of the carmaker in 2002 from the failed Daewoo Motor Corporation. The company has since become a key part of GM’s global manufacturing network, supplying Chevrolet vehicles to countries across the Asia-Pacific, Europe and other markets worldwide. It currently accounts for around a quarter of the brand’s global sales.
Local reports have suggested that greater control of the company potentially would make it easier for GM to carry out restructuring; the fear being that some output could be transferred to Europe.
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