General Motors has nominated Roberto Rempel, executive chief engineer for small SUVs and mini vehicles, as the head of its R&D unit that it plans to spin off despite opposition from unionized workers and the state-run Korea Development Bank, the second-largest shareholder of the US carmaker’s South Korean unit.

Rempel has been stationed in Korea since 2015.

“Roberto Rempel’s experience and deep knowledge of GM’s global engineering and the engineering capability in Korea will be critical to the long-term success of the GM Technical Center Korea,” said GM Executive Vice President Barry Engle.

The carmaker has also named Michael Simcoe, GM global vice president of design, and Sam Basile, GM global vice president of portfolio planning, as members of the board of the GM Technical Center Korea that it plans to launch early next month.

“The nomination of Michael Simcoe and Sam Basile to the board will ensure that the GM Technical Center Korea is directly connected to global planning for future product development programs,” Engle said.

According to the firm, the decision is part of efforts to strengthen the design and engineering capabilities of GM Korea’s R&D unit. The automaker plans to launch a compact SUV by 2023.

The announcement came amid escalating tension over GM Korea’s planned spin-off. Unionized workers of the carmaker have demanded that GM withdraw the plan, claiming the firm will eventually shut down its manufacturing facilities and keep only its research facility here.

The KDB has also criticized GM Korea for unilaterally pushing ahead with the plan.

Meanwhile, GM Korea President Kaher Kazem said the nomination of top executives to the board of its R&D unit, provides “further evidence of GM’s ongoing commitment to the operations in Korea.”

(christory@heraldcorp.com)