GM Korea talks to stave off bankruptcy extended to Monday

Rep. Hong Young-pyo from the ruling Democratic Party and GM Executive Vice President Barry Engle shake hands prior to their talks on how to resuscitate the ailing carmaker GM Korea at a restaurant in Seoul, South Korea, April 17, 2018.

(Photo: YONHAP/EPA-EFE/REX/Shutterstock)

General Motors has agreed to give negotiators a few more days as they try to save the automaker’s money-losing South Korea operation.

GM says it is extending a deadline to work out a tentative deal until Monday — 4 a.m. in Detroit, 5 p.m. in South Korea. The company has said GM Korea may file for bankruptcy if no deal is reached.

The requests for an extension beyond Friday came from both the South Korean government and GM Korea’s union, GM said. Messages seeking comment were sent to union and government officials.

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GM, which says it is seeking wage concessions and government assistance to offset a potential $600 million shortfall, said negotiations would continue through the weekend. The company announced earlier that it will close a plant in Gunsan as it seeks to restructure GM Korea.

Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence.

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