Tesla supplier agrees to buy GM's South Korean plant for EV manufacturing

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Tesla supplier agrees to buy GM's South Korean plant for EV manufacturing
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A South Korean supplier of Tesla Inc said on Friday it had agreed to buy a shutt...

A logo of General Motors is pictured at its plant in Silao, in Guanajuato state, Mexico, November 9, 2017. REUTERS/Edgard Garrido

The deal comes after GM closed one of its four South Korean plants in late May and let go thousands of workers, as part of a global restructuring drive which culminated in a major financial support package from the South Korean government. Myongshin, also a Hyundai Motor supplier, is part of a consortium which would initially spend a total of 200 billion won on the factory to produce 50,000 EVs starting 2021 and 150,000 EVs in 2025, according to a statement by a provincial government.

The consortium was in talks with an unidentified global automaker to manufacture electric vehicles at the facility, a source with direct knowledge of the matter earlier told Reuters, adding that it was not Tesla.

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