GM weighing plans to shift production out of troubled Korean peninsula
08 Apr 2013
General Motors is keeping a close watch on the developments in the Korean Peninsula and would consider shifting production if the situation deteriorated, GM CEO Dan Akerson said this morning.
"If there were something to happen in Korea, it's going to affect our entire industry, not just General Motors," Akerson said during an hour-long appearance on CNBC's "Squawk Box" programme.
He said in the long-term if producing vehicles in South Korea appeared risky, GM would consider relocating vehicle assembly.
One had to start to think about where one had the continuity, the supply and safety of one's assets and employees, he said, adding that it was a concern for everybody.
However, he added, it would be hard to make any immediate changes to vehicle production in response to North Korean dictator Kim Jong Un's threats to deploy the country's nuclear arsenal.
He said the company was making contingency plans for the safety of its employees to the extent it could. Beyond that it was difficult to shift production, he added.
GM makes 145,000 vehicles in South Korea for sale to local customers and while 1.3 million are exported to other markets, including the US. The Chevrolet Spark minicar, for instance is made in South Korea and shipped to US dealerships.
GM operates five factories in South Korea, which in addition to other models produce the Opel Mokka and the Chevrolet Cruze for the world market.
According to Akerson, anything that happened in Korea was critically important to its global production and how the company viewed the world.
Ackerson said a backup plan could include shifting parts of production.
He added, GM had to consider the availability of workers and transport infrastructure, as well as protecting its assets.
