Tesla Supplier agrees to buy auto factory from GM to start manufacturing of EVs: Report

Tesla Inc’s a South Korean supplier has reportedly agreed to buy General Motors’ local closed auto factory start contract manufacturing of electric vehicles (EVs).

According to Reuters the deal comes after GM closed one of its in late May and let go thousands of workers, as part of a global restructuring drive which culminated in a major financial support package from the South Korean government.

As of now there is no word on the sales price of the unit, however, auto parts maker Myongshin said it would buy the land and buildings of the GM facility for  USD 99.5 millionon June 28.

The agency citing statement by a provincial government notes that Myongshin, which is part of a consortium which would initially spend a total of 200 billion won on the factory to produce 50,000 EVs starting 2021 and 150,000 EVs in 2025.

GM Korea in a statement said “We aim to close this deal as soon as possible to ensure that there will be ongoing economic activity.”

The consortium was in talks with global automaker to manufacture electric vehicles at the facility, but that was not Tesla said a close source with direct knowledge to the agency.

The new plant will take advantage of South Korea’s free trade deal with the United States and Europe, as well as the country’s electric car supply chain. It is expected to create 900 jobs and another 2,000 at suppliers and other firms.

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