GM South Korea Halts Production At Two Plants On Supply Crunch: Reuters

by Shivani Kumaresan, Benzinga Staff Writer

July 20, 2022 7:03 AM | 1 min read |

General Motors Co's GM South Korea unit has halted production at its two factories in the country, Reuters reported.
The company took the decision after one of its suppliers refused to supply auto parts.
The supplier, ERAE AMS, which makes automotive generators, calipers, and brake parts, has been demanding a price rise for its parts supplied to GM's Korea factories.
"GM Korea plans to continue having discussions with ERAE AMS to resolve the issues," the report cited GM Korea.
GM Korea's Changwon and No. 2 Bupyeong plants, with a combined annual production capacity of about 70,000 vehicles, accounted for about 30% of GM Korea's total annual production capacity last year.
Price Action: GM shares are trading lower by 0.58% at $34.20 in premarket on the last check Wednesday.
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