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Companies

GM faces backlash over spinoff of South Korean research unit

Union votes to strike, while shareholder Korea Development Bank plans lawsuit

GM Korea's labor union last week voted to strike if the company spins off its research unit.   © Reuters

SEOUL -- U.S. automaker GM faces a backlash over a shareholder resolution at its South Korean unit that spins off its local research unit. The labor union and minority shareholders are vowing to stop the move, accusing the U.S. automaker of preparing to shut down production lines in South Korea.

GM Korea passed a resolution to spin off its research and development affiliate at a shareholders meeting on Friday. The company said the new entity, GM Technical Center Korea, will focus on automotive engineering and design, while its parent will handle manufacturing and sales.

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