Tesla supplier agrees to buy GM Korean plant for EV manufacturing

A South Korean supplier of Tesla has agreed to buy a shuttered factory from General Motors local unit to start contract manufacturing of electric vehicles, possibly for the U.S. and Europe. The deal comes after GM closed its Gunsan factory, one of its four South Korean plants, in late May as part of a global restructuring drive which culminated in a major financial support package from the South Korean government.
GM did not disclose the sales price of the Gunsan factory, but auto parts maker Myongshin said it would buy the land and buildings of the GM facility for 113 billion won $99.5 million. Myongshin, also a Hyundai Motor supplier, is part of a consortium that 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.