General Motors will start discharging from office around 1,500 representatives in Thailand in June, after declaring the intention to sell its local production plants, a government spokesman said on Wednesday.
Recall, GM said earlier in the week it would purchase its two plants in the eastern industrial province of Rayong to China’s Great Wall Motor (-1.72 percent). General Motors shares eased by 1.01 percent on Wednesday at 1205 GMT.
All the Rayong plants’ employees would be off the payroll under the terms of GM’s purchase agreement with Great Wall, as it became known due Jak Punchoopet, adviser to the Minister of Labour comments to Reuters.
Moreover, General Motor will act upon Thai labour law, providing all needed pays for the affected workers, including granting an additional 4month reward to all redundant workers.
Great Wall Motor, one of China’s largest sport-utility cars makers, told it would purchase vehicles from the Thai base as part of its intentions to go worldwide and tap the Southeast Asian automotive industry, for which Thai is seen as a hub.
GM Southeast Asia’s representative, Sean Poppitt, said that the Thai Ministry of Labour’s information was “broadly correct” and referred questions on whether any employees might be rehired to Great Wall Motor.
To crown it all, the car producer announced that it was going to cease its operations also in Australia and New Zealand, aiming to leave the loss-making markets and shift to the U.S., China and South Korea.