GM Prepared to Move Production from Korea if Situation Worsens image

GM CEO Dan Akerson said that tensions in Korea might force the automaker move production from the region.

“Anything that goes on in Korea is important to our global production,” said Akerson. “If there were something that would happen in Korea, it’s going to affect our entire industry, not just General Motors.”

Akerson added that if situation in Korea worsens the automaker is prepared to move production from the region. GM has five facilities in South Korea and which manufacture 145,000 vehicles annually for the domestic market and 1.3 million for export.

“We are making contingency plans for the safety of our employees as best we can,” said Akerson. “You’ve got to start to think about where you have the continuity of supply and safety of your assets and your employees.”

On another matter, the CEO said that the “Government Motors” stigma was now left behind, especially after the automaker reported profits of $23 billion since the 2009 bankruptcy, hired 25,000 US workers and made investments of $8.5 billion. Akerson said that he sees growth in the US continue in the following years, as consumers have to replace their aging vehicles.

“There’s this underpinning strength that may go for the next four or five years,” Akerson said.