(LEAD) GM names execs to board of GM Technical Center Korea

(ATTN: ADDS details and background in last 7 paras)

SEOUL, Nov. 21 (Yonhap) -- General Motors Co. has named its senior engineering and design executives to the board of GM Technical Center Korea, ahead the separate entity's launch early next month, the carmaker's local unit said Wednesday.

GM Executive Chief Engineer Roberto Rempel will serve as representative director of GM Technical Center Korea from Dec. 3 when the R&D firm starts operations, GM Korea said in a statement.

GM Korea President and Chief Executive Kaher Kazem said GM's nomination of the senior global executive to the R&D company was further evidence of the Detroit carmaker's ongoing commitment to continued presence in the Northeast Asian country.

"We are taking the necessary steps to build a long term, sustainable future for GM in Korea," Kazem said. "Our shareholders are making significant investments in our manufacturing and product development operations, and the nomination of senior global leaders to the technical center board will help to position it to win more work into the future."

Rempel has been in charge of all vehicles developed by GM under small sport-utility vehicles and mini car platforms since June 2015.

Other executives named to the board include Michael Simcoe, GM global vice president of design, Sam Basile, the carmaker's global vice president of portfolio planning and Albert Nazarian GM's finance director, global product development and chief financial officer of growth market vehicle programs, the statement said.

The nomination of the two to the board shows the GM Technical Center Korea is directly connected to global planning for future product development programs, it said.

GM announced the R&D separation plan in Korea in July. The state-run Korea Development Bank (KDB), the second-biggest shareholder in GM Korea, opposed the U.S. carmaker's "unilateral" push. GM Korea's union also blasted the plan, arguing it is GM's initial step to scale down its plants in Korea.

In May, GM and the KDB signed an agreement to permit a combined 7.7 trillion-won (US$6.7 billion) lifeline -- 6.9 trillion won from GM and 810 billion won from the KDB -- to keep the loss-making Korean unit afloat. In the same month, GM shut down one of its four car assembly plants in Korea due to a low utilization rate of 20 percent.

In the 2014-2017 period, GM Korea posted 3.134 trillion won in accumulated net losses due to a lack of new models and weak demand.

GM owns a 77 percent stake in GM Korea, with the KDB and SAIC Motor controlling 17 percent and 6 percent, respectively.

kyongae.choi@yna.co.kr
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