Tesla supplier bought GM plant in Korea and is going to produce electric cars on it

Tesla supplier bought GM plant in Korea and is going to produce electric cars on it

April 1, 2019 0 By autotimesnews

Myongshin, which supplies auto components for Tesla, agreed to buy General Motors automobile plant in South Korea. At the enterprise it is planned to adjust release of electromobiles.

According to Myongshin, the amount of the transaction amounted to $ 99.5 million. For this amount, the company will receive the plant and the surrounding territory.

Myongshin is a supplier of automotive components. In addition to Tesla, Hyundai buys the company’s products. Myongshin is part of a consortium that intends to invest $ 176 million in the former GM factory in order to start producing 50,000 electric vehicles by 2021 and 150,000 by 2025.

It is planned to create 900 new jobs, while another 2000 people will be employed in companies engaged in the supply of components for electric vehicles.

It is curious that so far there is no information about what brand of electric cars will be collected on this site. According to Reuters, Myongshin will produce cars for a third-party car brand, and this will not be Tesla.

At the end of May 2018, GM closed one of four of its South Korean plants and cut thousands of workers. These actions became part of a global restructuring plan, which was carried out with financial support from the South Korean government. At the factory in Kunsan, in particular, the Chevrolet Orlando minivan was manufactured.