GM Korea will shut down its assembly plant in Gunsan, North Jeolla Province by the end of May, the automaker said Tuesday. The plant has run at only about 20 percent capacity for the last three years and the rate keeps falling.

Some 2,000 workers will lose their jobs.

GM Korea president Kaher Kazem said the move is part of business restructuring in Korea but pledged to make every effort to support all affected employees and their communities.

GM has been aggressively downsizing around the world in recent years.

GM's head of overseas operations Barry Engle had already hinted at the move, saying the company was "at a critical crossroads" and should make some significant progress by the end of February in discussion with key stakeholders.

go to the home page to the top