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Bloomberg: GM May Pull out of S. Korea

Written: 2018-02-07 10:26:43Updated: 2018-02-07 15:36:33

Bloomberg: GM May Pull out of S. Korea

U.S. major automaker General Motors(GM) has hinted that it might pull out of South Korea.

Chief Executive Officer Mary Barra said of GM's Korea operations during a conference call with analysts on Tuesday that "we’re going to have to take actions going forward to have a viable business." 

Barra said that GM will take steps that “may result in some rationalization actions or restructuring that potentially could have a material impact on our results,” adding it’s too soon to tell right now.

Bloomberg News said that GM has adopted a clear strategy outside the U.S. that if the carmaker doesn’t see a path to profit, it’s going to bail. The report expected that the next market to face this approach will likely be South Korea. 

It added that in the past three years, Barra gave up on fixing businesses in Russia, Europe and India and largely left those markets.

David Whiston, an analyst with Morningstar Inc. in Chicago, projected that GM is likely to do something very drastic about GM Korea, possibly an outright exit.

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