From BS:
General Motors Co is preparing a concerted attack on its most troubled international operations that would entail big output cuts at factories in South Korea and likely an end to production in Australia, said people familiar with the auto maker’s plans.
GM intends to close its two Australian plants and separately slash production in South Korea by as much as 20 per cent by 2016, these people said. The moves come on top of a planned factory closing in Germany and last week’s decision to end Chevrolet sales in Europe in two years. A portion of the South Korean factory output would be used to feed the Australian market, the people said. The largest US auto maker has determined that economic changes – including high wages and labor unrest in South Korea, and a strong currency in Australia and shift to imports there – have undercut its manufacturing competitiveness in the two countries.
…”They are going. They will not want to put more money in after the current model run winds up in 2016,” one senior industry representative said. A cabinet member denied though that the government was resigned to closure, saying “it is in no one’s interest for car making to end.”
Fair dinkum or a negotiating tactic? Either way, blaming the dollar makes it our own fault.
