GM Korea Ponders Crossover Model

General Motors Co.’s financial strapped unit in South Korea says it might launch a crossover vehicle, but only if the company’s bailout plan solidifies this month.

The new model would replace the slow-selling Spark five-door hatch. U.S. demand for the subcompact car plunged 36% to fewer than 23,000 units last year.

GM Korea tells Reuters that the new model would be contingent upon a requested Korean government bailout and significant concessions from its workforce. The company says it faces a cash call on debt at the end of April and warns that bankruptcy is inevitable without a multibillion-dollar bailout.

GM announced in February it would shut down its assembly plant in Gunsan, which has been operating at 20% of capacity, by May. Last week the company said it intends to drop one of two production shifts at its Bupyung assembly plant. That facility has been operating two shifts for two days per week.