GM plans to invest $2.8 billion over the next 10 years in its loss-making operations in South Korea, and has asked Seoul to provide financial resources for investment. The US automaker announced last week that it would close a factory in Gunsan, southwest of Seoul, and said it was considering the fate of its three remaining plants in South Korea.
The investment proposal is added to a GM offer of more than $2.2 billion to swap equity debt for financial support and tax benefits from Seoul. GM has asked South Korea to inject funds into GM Korea through the state-run Korea Development Bank (KADB), which holds 17% of the unit.
Daimler and its Chinese partner Pike are planning to invest about $2 billion in a state-of-the-art factory in China to boost their relationship with Jelly, a sudden blow to the German automaker. Pike said that the two companies would invest $ 1.88 billion in upgrading a Mercedes-Benz plant, including electric cars. The chairman of the Chinese auto industry Jelly said he had bought a 10% stake in Germany’s Daimler, in a $9 billion bet on the possibility of access to Mercedes-Benz’s proprietary technology. The move is a challenge for Daimler as the company and its Chinese partner Pike Motor have an industrial alliance to develop cars and trucks with Renault-Nissan, which holds a 3.1% stake in Daimler.
The move means China’s largest private car maker is now Daimler’s biggest shareholder. Geely said it was seeking to form an alliance with Daimler, which is developing electric and self-driving cars in the face of competition challenges with others such as Tesla, Google and Uber.
Comcast, the largest US cable television operator, declared it was offering Sky for $31 billion, defying Fox Media Corp’s Rupert Murdoch to acquire the European pay-TV group. Fox has already agreed on a deal to buy the 61% stake it does not already own in Sky.