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GM and LG cancel plans for fourth US plant - WSJ

Seeking Alpha logo Seeking Alpha 1/20/2023

General Motors Co. (NYSE:GM) and LG Energy Solution have scrapped plans to construct a fourth plant in the US, according to the Wall Street Journal.

Citing people familiar with the matter, the outlet reported that while the automaker still intends to build an additional battery plant, it will not be done alongside LG. 

The sources indicated that there was disagreement about the speed at which EV production could be ramped. According to the Journal, GM had consistently pushed its South Korea partner for an accelerated timeline. The two sides also apparently disagreed on the recognition of a union to represent workers as well, with GM preferring to recognize the union via an expedited process. LG, according to the reporting, declined this arrangement.

Read more on the union vote at the Lordstown plant.

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