General Motors today said that it has reached a tentative agreement with its South Korean labour union on measures to cut costs and allocate new car models to GM Korea factories.
The agreement between GM and its union steers the American carmaker away from filing for bankruptcy protection for its loss-making Korean unit. It also paves the way for support from the Korea Development Bank, which holds a 17 percent stake in GM Korea.
The union will vote on the deal later this week.
"Ratification of the tentative agreement is critical to our viability plan and securing support of the Korean government and our shareholders, KDB and GM," GM Korea CEO Kaher Kazem said in a statement. "The labour union has demonstrated its commitment and we continue to work with our other key stake-holders to gain their support."
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