GM to Spend $7.3 Billion on Korean Unit

General Motors Co. says it will invest $7.3 billion over the next five years to expand its design, engineering and production capabilities in South Korea.

The spending will double the size of the company's design center near Seoul, making it GM's third-largest such facility after those in the U.S. and Brazil. The carmaker pledges to build next-generation versions of six models including mini, small and midsize cars and an electric vehicle intended for global markets in Korea.

GM also reiterates a promise to maintain Korea as an important contributor to its small-car development and a key production base for Asian markets.

Analysts say the commitments may soothe GM's combative labor force in Korea, which has threatened "enormous resistance" to GM's plan to move production of the next-generation Chevrolet Cruze out of the country.